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34kurt
3 years ago
5

Keyser Materials has 6.5 percent coupon bonds on the market with 15 years to maturity. The bonds make semiannual payments and cu

rrently sell for 102 percent of par. What is the current yield
Business
1 answer:
cestrela7 [59]3 years ago
7 0

Answer:

6.37%

Explanation:

Par Value = $1,000

Current Price of the bond = 102% of Par = $1,020

Coupon rate = 6.5% annually ÷ 2 = 3.25% Semiannually

Coupon payment = $32.5

Annual interest earned = $32.5 x 2 = $65

Current yield = Annual interest earned ÷ Current Price of the bond

Current yield = ($65 ÷ $1020) x 100 = 6.37%

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Answer:

the government, workers, and businesses of Country D

Explanation:

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Once consumption starts to fall, a domino effect takes place and the businesses are negatively affected, and they are forced to lay off workers, and the government is also affected because their revenue decreases and their spending increases.

3 0
3 years ago
Renee invested $2,000 six years ago at 4.5 percent interest. She spends her earnings as soon as she earns any interest so she on
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Answer:

C. Simple interest.

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7 0
3 years ago
Imagine you are the owner of a small local peanut butter company. You have many competitors in the peanut butter market but your
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A

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8 0
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6 0
4 years ago
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6 0
3 years ago
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