1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vladimir79 [104]
3 years ago
14

A bond has a current yield of 9% and a yield to maturity of 10%. Is the bond selling above or below par value?

Business
1 answer:
CaHeK987 [17]3 years ago
7 0

Answer:

The current yield = 9%

The yield to maturity = 10%

The price of the bond will be below the par value and called as discount bonds. This is because the bond and yield to maturity holds the inverse relationship. Therefore, the bond will be issued at discount, below the par value because yield to maturity is greater than current yield.

You might be interested in
On December 1, 20X1, Money Co. gave Home Co. a $200,000, 11% loan. Money paid proceeds of $194,000 after the deduction of a $6,0
zysi [14]

Answer: <em>(C.) $2,005</em>

Explanation:

Given :

Money Co. made a cash outflow of $194,000 for the $200,000 loan Money gave to Home Co.  

The book value of the loan is $194,000.

The stated rate is 11%.

Hence they will receive an effective interest rate of 12.4% on cash outflow.  

∴

Income from the loan = Book value × Effective interest rate × No. of months of the year

= $194,000 × 0.124 × \frac{1}{2}

= $2,004.67

3 0
3 years ago
A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office bu
Gwar [14]

Answer:

$582,100

Explanation:

Cost of land                  $570,000

Less;Salvage parts sold ($23,000)

Demolition of old building   $33,000

Land preparation and leveling $2,100

Total cost of land                       $582,100

The ground breaking ceremony expenses are not capital expenditures therefore ignored in above working.

4 0
3 years ago
To indicate grouping in access, select _____ as the entry in the total row for the field to be used for grouping
Vinvika [58]
<span>Select the Group By function. This makes it so that records of the same group are placed onto a single record with a column that is added and holds a nested table of the remaining columns. This function also returns a table with records grouped together based on the values in one or more columns.</span>
3 0
3 years ago
Robert works in the import-export department of Bank of America and he has noticed the following spot currency quotes: 1 U.S. do
lubasha [3.4K]

Answer:

2.3925

Explanation:

The computation of the Mexican pesos is shown below:

= (1 British pound × 1 U.S. dollar) ÷ 1 British pound for the Danish krone

= (1.65 × 10.875 ÷ 7.5)

= 2.3925 Mexican pesos

Simply we multiplied the 1 British pound with the 1 US dollar and then divide it by the 1 British pound for Danish krone so that the correct spot currency can come

3 0
2 years ago
Following is Stanley Black &amp; Decker’s income statement for 2016 (in millions): STANLEY BLACK &amp; DECKER, INC. Income State
LekaFEV [45]

Answer:

Gross profit Margin  37.41%

Explanation:

The gross profit margin is the quotient between the gross profit and the sales:

\frac{gross \: profit}{sales} = $gross profit margin

\frac{11,406.9 - 7,139.7}{11,406.9} =\\\frac{4,267.2}{11,406.9}

Gross profit Margin 0,374089 = 37.41%

4 0
3 years ago
Other questions:
  • Leslie Bradley is an entrepreneur with a small business in Little Rock, Arkansas. Working with a local engineer/inventor, Leslie
    8·1 answer
  • At the beginning of march, janet opened a checking account with her first paycheck of $153.82. during the month, she withdrew $4
    9·2 answers
  • Marcus is a self-employed marketing consultant. He is good at helping his clients with their marketing challenges; however, he i
    6·1 answer
  • What should the driver do if he sees a steady yellow x over the lane that he driving in
    8·1 answer
  • Preparing Effective Business Presentations Getting ready for a presentation may cause feelings of anxiety. The best way to reduc
    12·1 answer
  • how goods are produced often affects an entire society. natural resources, we have learned, are limited. while some natural reso
    14·2 answers
  • Leiff goes online to buy a new video game. He finds a site that currently has a promotion of 15% off on all orders over $50. Lei
    6·2 answers
  • Write a brief note on Axioms of interpersonal communication with example of real life business communication.
    9·1 answer
  • Amila is examining the monthly returns of various stocks. she would like to compare the underlying distributions of the stocks v
    11·1 answer
  • True or false? the patient should be given a receipt for payments on account even if the account is not paid in full.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!