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Alika [10]
3 years ago
8

If the annual interest rate printed on the face of a bond is 25 percent, the face value of the bond is $1,000, and the current m

arket price of the bond is $700, what is the current yield on the bond?
Business
1 answer:
love history [14]3 years ago
3 0

Answer: Current yield on the bond = 35.71%

Explanation:

Given that,

Annual interest rate printed on the face of a bond = 25 percent

the face value of the bond = $1,000

the current market price of the bond = $700

Therefore,

current yield on the bond = \frac{Annual\ interest\ rate\ on\ the\ face\ of\ the\ bond}{Current\ price\ of\ the\ bond} \times 100

=  \frac{0.25\times1000}{700} \times 100

= 35.71 %

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According to a recent study, the AIS strategic role that has the greatest impact on shareholder value is:
Gekata [30.6K]

Answer:

Transform

Explanation:

According to a recent study, the AIS strategic role that has the greatest impact on shareholder value is Transform.

The AIS strategic roles known as Accounting information System strategic roles has a great impact on shareholders because it's strategic roles bring about transform and also has impact on business because it brings Reformation of processes in business. It should be noted that AIS also brings about automation.

5 0
4 years ago
Avon Barksdale's operation uses large quantities of prepaid cell phones, on average 500 per week with a standard deviation of 45
alukav5142 [94]

Answer:

162.5 phones

Explanation:

The Avon Barksdale's operation uses 500 cell phones per week. The order quantity is 125 phones which takes 2 weeks to to deliver. To calculate the average inventory for Avon Barksdale we will subtract reorder quantity from the weekly use of cell phones.

500 per week * 2 weeks = 1,000 cell phones

he reorder point is 1,100 phones.

1,100 - 1,000 = 100 cell phones

The lead time is 2 weeks for 125 phones delivery

125 / 2 weeks = 62.5

62.5 + 100 = 162.5 phones

8 0
4 years ago
The preferred stock of a company pays a $2.75 quarterly dividends. If the preferred stockholders' required return is 7.25% for t
Sonbull [250]

Answer:

$151.72

Explanation:

Quarterly dividends of preferred stock = $2.75

Annual dividend of preferred stock = 4 * Quarterly dividend

Annual dividend of preferred stock = 4 * $2.75

Annual dividend of preferred stock = $11

Required return = 7.25% = 0.0725

Return = Dividend / Current price

0.0725 = $11 / Current price

Current price = $11 / 0.0725

Current price = 151.724138

Current price = $151.72

So, the preferred stock should sell for $151.72.

4 0
3 years ago
Which method of heating is better in terms of operating cost: electric-resistance?
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6 0
4 years ago
A bond is the issuer's written promise to pay the _____________ of the bond with interest.multiple choicemarket valuepar valuein
sineoko [7]

A bond is the issuer's written promise to pay the par of the bond with interest. multiple choice market value par value interest value.

A bond is the issuer's written promise to pay the par value of the bond plus interest. The face value of a bond, also known as face value or face value, is paid on a specific future date known as the bond's maturity date. For most bonds, the issuer is required to pay interest semi-annually.

In the contract between the borrower (company) and the lender (investor), the borrower pays the specified amount of interest for each period and promises to repay the principal on time.

A bond agreement is a legal document that sets out the rights and obligations of both parties. Issuing company and creditor. It is intended to address all issues related to bond issuance, including: As collateral and call charges.

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brainly.com/question/25965295

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6 0
2 years ago
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