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Maru [420]
4 years ago
6

A bond with a par value of $1,000 and an annual coupon has a yield to maturity of 5.60% and a current price of $975. If the bond

has 18 years to maturity, what is its current yield?
Business
1 answer:
gtnhenbr [62]4 years ago
8 0

Answer:

Current Yield is 5.74%

Explanation:

Current yield is the ratio of coupon payment of a bond to its current market price.  It is calculated by using coupon payment and the current market value of the bond.

Coupon Payment = $1,000 x 5.6% = $56

Current market price = $975

Formula for Current yield is as follow

Current Yield = Annual Coupon Payment / Current Market Price

Current Yield = $56 / $975

Current Yield = 0.0574% = 5.74%

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Assume that Live Co. has expected cash flows of $200,000 from domestic operations, 200,000 Swiss francs from Swiss operations, a
jok3333 [9.3K]

Answer:

$559,500

Explanation:

To find Live Co.'s expected dollar cash flows at the end of this year convert the Euro and Swiss francs amounts to dollar using their respective rates and then add all of the dollar amounts.

Swiss francs in dollars:

S = 200,000*0.83 = \$166,000

Euros is dollars:

E = 150,000*1.29 = \$193,500

Dollar cash flow:

C=D+S+E\\C = \$200,000+\$166,000 +\$193,500\\C=\$559,500

The company's expected dollar cash flows are $559,500.

8 0
4 years ago
The owner of a small color television set offers to sell it to a neighbor for $75. As the neighbor stands there thinking about t
NNADVOKAT [17]

If he was the first to say he wanted the product and the seller wants to sell it as fast as possible than yes. But not technically it would be  a kind of verbal understanding and agreement.

8 0
4 years ago
The main problem with relying on contracts to reduce opportunistic behavior by alliance partners is that a) in cross-border alli
Shkiper50 [21]

Answer: d. it is impossible to specify all opportunistic actions by an alliance partner

Explanation:

A strategic alliance is simply an agreement that takes place between two or more parties in order to pursue a certain goal even though they still remain independent organizations.

The main problem with relying on contracts to reduce opportunistic behavior by alliance partners is that it is

impossible to specify all opportunistic actions by an alliance partner.

8 0
3 years ago
Match the level of unemployment with the condition of the overall economy. Unemployment equals the natural rate. Cyclical unempl
Harman [31]

Answer:

Note: <em>The organized question is attached as picture</em>

<em />

1. Actual GDP is below potential GDP

Level of unemployment: Unemployment is above the natural rate

2. Actual GDP is equal to potential GDP

Level of unemployment: Unemployment equals the natural rate

3. Actual GDP is above potential GDP

Level of unemployment: Unemployment is below the natural rate

3 0
3 years ago
In this simulation, theoretical utilization of the intensive care unit (ICU) is calculated as the flow rate of patients that arr
Dvinal [7]

Answer:

The theoretical utilization of the ICU is:

= 0.25 or 25%

Explanation:

Inter-arrival time or flow rate of patients that arrive for service at the ICU = 4 hours

Mean length of stay = 6 hours

ICU's capacity to serve customers in 6 hours = 4*6 = 24 bed-hours

Total demand = 6 hours

Therefore, the theoretical utilization = flow rate of patients that arrive for service at the ICU in a given unit of time divided by ICU's capacity to serve customers in that same unit of time

= 6 hours/24 bed-hours

= 0.25

4 0
3 years ago
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