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3 years ago

A $10,000, 8 percent coupon bond that sells for $10,000 has a yield to maturity of

Business

1 answer:

Illusion [34]3 years ago

8 0

Answer:

A) 8 percent.

Explanation:

Coupon rate refers to the expected periodic earnings of a bond until its maturity. The coupon rate is expressed as a percentage of the par value or the face value of the bond. It is similar to the interest rate for other investments option. A bond's coupon rate is, therefore, its interest rate.

A bond coupon rate represents its yearly earnings. However, most bonds will pay the interest twice per year. The bond issuer pays the bondholder regular and fixed interest until the bond matures. The coupon rate determines the bond's profitability. A bond with a higher coupon rate is more attractive to investors.

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At year end, Rebos Company's financial statements showed sales of $820 million, net income of $425 million, total assets of

Dafna11 [192]

Answer:

total sales $820 million

net income $425 million

total assets $750 million

total liabilities $735

1.2 million outstanding common stocks

an offer was made to buy their assets at $742.5 million

company's book value per share:

= (total assets - total liabilities) / total number of outstanding common stocks

= ($750,000,000 - $735,000,000) / 1,200,000 = $12.50 per stock

company's liquidation value per share:

= (total offer - total liabilities) / total number of outstanding common stocks

= ($742,500,000 - $735,000,000) / 1,200,000 = $6.25 per stock

4 0

3 years ago

To build wealth is a gamble; the wealthy people are lucky and become rich overnight. True or false

klasskru [66]

This seems like a rather subjective question. Wealth is built over a lifetime with income. Inheritance is definitely one way to become wealthy, so I would say True

5 0

3 years ago

Shelton Enterprises is expecting tremendous growth from its newest boutique store. Next year the store is expected to bring in n

Sedaia [141]

Answer:

B. $6,448,519

Explanation:

The computation of the present value of this growing annuity is given below:

PVA = [Cash flow at year 1 ÷ (interest rate - growth rate)] × {1 - [(1 + growth rate) ÷ (1 + interest rate)^number of years}

= [$675,000 ÷ (0.18 - 0.13)] × [1 - (1.13 ÷ 1.18)^15]

= $6,448,519

Hence, the correct option is b.

4 0

3 years ago

What will happen when I link two text boxes? When I click on the box, it will take me to a Web site. When the first box is full,

andreev551 [17]

It would be easier to expand your first text box if you don't want to take the risk of lumping everything together. Move your work to one text box and expand it so it all fits.

4 0

3 years ago

Read 2 more answers

Arianna just made another fantastic investment: She purchased 400 shares in Great Gains Corporation for $20.0920.09 per share.

Gwar [14]

Answer:

1. Likely the price of the stock either goes up or falls

2. There is no need for a stop loss order in this scenario.

3. 5412541.2

Explanation:

1. Stock market prices are often unstable, prices can be up today, the next day they are low.

2. Arianna has already made over 100% profit from the stock since she purchased at a good low price, yesterday's stock close price was still profit for her.

3. A 10% Stop loss price would have been the idea order price rather than the $53.7353.73.

4. Remember Stop loss order are meant to reduce or minimize the loss of investor or trader, a calculated level of should be carefully decided.

8 0

3 years ago