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
Reika [66]
3 years ago
11

An investor pays $900 for a bond with a principal value of $1,000 and a coupon rate of 8%. How much in annual interest will the

investor receive on this investment?
Business
1 answer:
solmaris [256]3 years ago
5 0

Answer:

Annual Interest = $80

Interest rate = 8.89%

Explanation:

The investor pays discounted price for this bond.

We know, Annual Interest = Coupon payment/Market value

Given,

Coupon payment = Principal value*Coupon rate

Coupon payment = $1,000*8% = $80

Market value = Price pays for the bond = $900

Therefore, the annual interest rate = $80/$900

Annual Interest rate = 8.89%

Note that, coupon payment is the annual interest rate.

You might be interested in
A textile finishing process involves drying a fabric that has been treated with a volatile solvent. The wet fabric entering the
BARSIC [14]

Answer: (a) 2.4%

(b) 9.68*10^-3mg/m^3

Explanation:

See attachment

4 0
3 years ago
In order to make sure that audiences can correctly identify your mood and attitude during speech, it is necessary to make sure y
BabaBlast [244]
The correct answer for the question that is being presented above is this one: "c. Intonation." <span>In order to make sure that audiences can correctly identify your mood and attitude during speech, it is necessary to make sure you have correct intonation.</span>
Here are the following choices:
<span>a. Enunciation
b. Pronunciation
c. Intonation
d. Elucidation</span>
5 0
3 years ago
Read 2 more answers
Which of the following is an argument for free trade?
ipn [44]

i think it's" B" , from the explanation!

Explanation:

Free trade increases the size of the economy as a whole. It allows goods and services to be produced more efficiently. ... Free trade is good for consumers. It reduces prices by eliminating tariffs and increasing competition. Greater competition is also likely to improve quality and choice.

4 0
3 years ago
The following expenditures relating to plant assets were made by Adam Company during the first 2 months of 2020.
dem82 [27]

Explanation:

a.)

In terms of the cost principle, the cost of acquiring a plant asset involves all of the expenditures required to get this asset and also to get ready to serve it's purpose.

Cost is measurable by the cash amount paid for a transaction that has to do with money or the money equivalent paid when assets that are not cash are used as a means of payment.

the cash equivalent is the same as the fair market value of the assets that were given or received..

b )

the account title that expenditure should be debited

1. 5000 paid for land

2. 200 paid is for factory machine equipment

3. 850 paid for delivery truck is for equipment

4. 17500 paid for parking lot is for land improvement

5. 250 paid for companies name to be printed on truck is equipment

6. 8000 paid for installation is for equipment

7. 900 paid for insurance policy on truck is prepaid insurance

8. 75 paid as license fee is for license insurance

8 0
3 years ago
If interest rate on 1-year unsecured loan is 4.5%p.a. The inflation rate is 3.2% this year. What is the real interest rate?
Alexeev081 [22]

Explanation:

Jehsjj&( djshd kdkduryyhrhe tjrhrhrh

8 0
3 years ago
Other questions:
  • What is the simple interest earned on $2200 at a 4.6% interest rate for 3 years? Round your answer to the nearest cent
    10·1 answer
  • Matt has decided to purchase his textbooks for the semester. his options are to purchase the books via the internet with next da
    13·1 answer
  • What e-mail tips will help you write well-organized, carefully composed, and grammatically correct messages? check all that appl
    11·1 answer
  • Jean works for Fahrenheit Publishing which is a publisher of scientific journals. The company is dominated by low risk taking an
    9·1 answer
  • How does racial wealth gap affect families
    12·2 answers
  • The balance sheet of Cattleman's Steakhouse shows assets of $85,900 and liabilities of $13,500. The fair value of the assets is
    11·1 answer
  • How did the constitution differ from the articles of confederation? Match the correct document on the left to each of the featur
    9·2 answers
  • Using the continuous-debt method of setting your debt limit, you should be able get completely out of debt (other than your mort
    14·1 answer
  • Review the information in the chart with reasons for and against adding juice boxes to the high school lunch menu.A 2-column tab
    14·2 answers
  • Set up abs solve an equation for the following business situation
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!