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VikaD [51]
3 years ago
6

Heath Food Corporation’s bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity

of 8%. They pay interest annually and have a 9% coupon rate. What is their current yield?

Business
1 answer:
joja [24]3 years ago
3 0

Answer:

8.55%

Explanation:

For computing the current yield first we have to determine the present value by applying the present value formula which is shown below:

Given that,  

Future value = $1,000

Rate of interest = 8%

NPER = 7 years

PMT = $1,000 × 9% = $90

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

After solving this, the present value is $1,052.06

Now the current yield is

= PMT ÷ PV

= $90 ÷ $1,052.06

= 8.55%

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8 0
4 years ago
Gwendolyn Hunt was driving while intoxicated when she hit and killed Felicia Meyers, a seven- year-old, in a school crosswalk. G
BigorU [14]
<span>A major difference between juvenile and adult courts is that juvenile courts are more likely to consider extenuating circumstances (emotional, mental, situational, etc.). Frequently, young people will only be moved to adult courts if their crime was particularly heinous, a history of rehabilitation services have not improved the situation, the young person needs a significant about of intervention, or simply that the juvenile is nearly an adult. Though there is evidence of some past intervention on Gwendolyn's behalf, we have no evidence that the crime was planned. Though she was breaking the law and one could say that the possibility of an accident was a logical conclusion, there is (based on this) no evidence that she went out with the intention of hurting or killing someone. Also, given that she is still a minor and at an age when her reasoning abilities are not fully formed, she honestly may not have been able to make that connection. So, no, she should not be tried as an adult. However, she should serve actual time in a center, receiving rehabilitative services and completing community service in order to balance out some of the horror she has brought into the world through the death of a child.</span>
4 0
3 years ago
If the market risk premium increased to 6%, what would happen to the stock's required rate of return
Inessa [10]

Answer:

13%

Explanation:

As per the situation the solution of required rate of return first we need to find out the beta which is shown below:-

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

11% = 7% + Beta × 6%

Beta = 1

now If the market risk premium increased to 6% so,

The required rate of return = 7% + 1 × 6%

= 13%

Therefore for computing the required rate of return we simply applied the above formula.

7 0
3 years ago
On March 1, Merchandise was purchased for $90,000, terms 1/10, n/30, F.O.B Shipping Point. Provide the Journal
iogann1982 [59]

Answer:

I like eating pirates but

Explanation:

It taste so good and taste like popcorn

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2 years ago
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luda_lava [24]

Many inventors struggle with the question, "i made it; now how do i get rid of it?" they have made the error of considering marketing as <u> "an afterthought."</u>


Creating powerful business marketing strategies is basic to building and keeping up solid deals and an effective programming business. Compelling advertising techniques guarantee that your showcasing exercises are very much lined up with business objectives.  

So don't wrongly consider marketing strategies an untimely idea. Setting aside a little opportunity to write your methodology before you actualize your promoting plan will help center your item or administration arranging, center your business endeavors, and at last spare the business cash and reduction time-to-advertise.

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4 years ago
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