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Wittaler [7]
3 years ago
6

Belinda Herrera purchased a $5,000 bond at the quoted price of 94.125. The bond paid interest at a rate of 6%. What is the annua

l yield?
Business
1 answer:
belka [17]3 years ago
4 0

Answer:

6.37%

Explanation:

Annual yield is the annual dividend yield of a bond.

Formula for annual yield = Annual dividend amount / Current price of the bond

Annual dividend amount = Annual interest rate * Face value

= 6% * $5,000

= <u><em>$300</em></u>

Current price = 94.125 means that the bond price is 94.125% of the Face value

Current price = 0.94125* 5000 = <u><em>$4,706.25</em></u>

Therefore, annual yield = 300/4,706.25 = 0.0637 or 6.37%

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The Owner's Equity statement illustrates the capital account changes due to contributions, withdrawals, net income, or a net loss. So Ending Balance of the statement of changes in Owner's equity will be; Opening capital + Capital Added + Net Income - Owner's Withdrawals.

A one-page report titled a "statement of owner's equity" compares all assets and liabilities to determine the owner's equity's overall value. The snapshot, which is tracked over a predetermined time period or accounting period, depicts the flow of cash through a company.

Owner's equity is simply the difference between the owner's initial investment in the business and any withdrawals made by the owner. For instance: A real estate project with a value of $500,000 and a loan balance of $400,000 would have $100,000 in owner's equity.

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2 years ago
Bruno Company had a $200,000 beginning balance in bonds payable and a $210,000 ending balance in bonds payable. During the year,
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3 years ago
The Phoenix Suns decide to increase their ticket prices for next season. We might expect revenue will rise due to the higher pri
vaieri [72.5K]

We might expect revenue will rise given that Phoenix is a large city.

<h3>What is a revenue?</h3>

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Because Phoenix Suns decide to increase their ticket prices for next season, then, we might expect revenue will rise given that Phoenix is a large city.

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5 0
2 years ago
An increase in the money supply causes
Murljashka [212]

Answer:

Inflationary Pressure

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Inflationary pressures are the underlying causes of inflation. These pressures are the reason that the production of goods increases to meet or exceed consumer demand or that prices increase due to lack of supply. Inflationary pressures cause the economy to adjust as a result of supply and demand.

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The mission of the Securities and Exchange Commission (SEC) is to: a. PROTECT SHAREHOLDERS' RIGHTS BY MAKING SURE THAT STOCK MAR
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Answer:

b. PROTECT SHAREHOLDERS' RIGHTS BY MAKING SURE THAT STOCK MARKETS ARE RUN FAIRLY

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