The current yield for a corporate bond = 9.19 %
Calculation :
Amount of annual interest = face value × rate of interest
= $1000 × 8.0
= 8000%
Then, Current yield = amount of annual interest / current price
= 8000% ÷ $870
= 9.19 %
Do corporate bonds pay interest?
Corporate bonds pay interest semi-annually, which suggests that, if the coupon is five percent, each $1000 bond can pay the bondholder a payment of $25 every six months--a total of $50 per year
What Is the Current Yield?
Current yield is an investment's annual income (interest or dividends) divided by the present price of the security. This measure examines the present price of a bond, instead of looking at its face value.
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The natural level of output is the amount of real GDP produced b. when the economy is at the natural rate of unemployment.
Real GDP is essentially a measure of a country's total economic output, adjusted for changes in prices. The value of real GDP reflects a country's economic statistics at a macro level.
When real GDP produces natural output, that is, the output level is in line with the equilibrium of the labour market when the real price level is equal to the expected price level. Then the economy makes the most of its productivity, including fully utilized labour, which means that the economy is at the natural rate of unemployment.
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Based on the information given, it can be illustrated that the form of business organization that's depicted is a business trust.
A business trust is also known as common law trusts. They are legal instruments that provide a trustee the authority and power to be able to manage the interest of a beneficiary in a business.
Since Overseas Shipping Corporation and Port Storage Company transfer their assets to Quality Operations, Inc., which manages the assets and distributes the profits to the beneficiaries. This is known as a business trust.
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Answer:
a translator for an international hotel in Las Vegas would be what I'd put.
Answer:
1. The prepaid insurance account shows a debit of $5,280, representing the cost of a 2-year fire insurance policy dated August 1 of the current year.
- Dr Insurance expense 1,100 (= $5,280 x 5/24 months)
- Cr Prepaid insurance 1,100
Five months of insurance expense must be recorded for August - December.
2. On November 1, Rent Revenue was credited for $1,800, representing revenue from a subrental for a 3-month period beginning on that date.
- Dr Rent revenue 600 (= $1,800 x 1/3 months)
- Cr Unearned revenue 600
Rent revenue corresponding to January cannot be recorded as earned yet, so it must be recorded as unearned revenue (liability).
3. Purchase of advertising materials for $800 during the year was recorded in the Advertising Expense account. On December 31, advertising materials of $290 are on hand.
- Dr Advertising supplies (or materials) 290
- Cr Advertising expense 290
Unused advertising material is considered an asset that can be used during the next period, the same as any other supplies.
4. Interest of $770 has accrued on notes payable.
- Dr Interest expense 770
- Cr Interest payable on notes payable 770
Accrued interest must be recorded as an expense during the period in which it occurs (accrual principle).
