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
Nookie1986 [14]
3 years ago
8

has 10 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 1

07.8 percent of par. What is the current yield on the bonds?
Business
1 answer:
katovenus [111]3 years ago
5 0

Answer:

4.62%

Explanation:

we need to calculate the yield to maturity of the bond:

YTM = [coupon + (face value - market value)/n] / [(face value + market value)/2]

  • coupon = $50
  • face value = $1,000
  • market value = $1,078
  • n = 38 semiannual payments

YTM = [$50 + ($1,000 - $1,078)/38] / [($1,000 + $1,078)/2]

YTM = $47.95 / $1,039 = 4.615 ≈ 4.62%

You might be interested in
34s left The National Income Accounts Unanswered GNP equals GDP A. minus net receipts of factor income from the rest of the worl
ra1l [238]

Answer:

D. plus net receipts of factor income from the rest of the world

Explanation:

Gross national product (GNP) is the value of all final goods and services produced by a country's residents both at home and abroad.

GNP = Consumption + Investment + Government + Net Export + Net factor income from abroad

6 0
3 years ago
The House Subcommittee on Oversight and Investigations made its recommendations after looking into failures at each of the follo
zubka84 [21]

Answer:

The correct answer is ENRON.

Explanation:

Going back to December 2, 2001, is going back to one of the biggest scandals in economic history. That day, the energy company Enron declared bankruptcy. First global energy distributor, invoiced 100,000 million dollars annually.

Jeffrey Skilling, the mind behind accounting, did his last master move badly. Before the bankruptcy they were seen coming, he resigned his position alleging family reasons and sold the shares he had in the company. Four months later came bankruptcy. Supposedly, he didn't know anything about the critical situation of the company. He did not strain.

In 2004 he was charged with about thirty charges, including operating with confidential information, by selling about 60 million dollars in Enron shares before bankruptcy, deceiving the auditor or conspiracy.

7 0
3 years ago
Which of the following is true of the Discount on Bonds Payable account? The bonds are due inten years.A) It is subtracted from
Aliun [14]

Answer:

A) It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet

Explanation:

The discount on Bonds payable, as their name implies, decrease the Bonds Payable carrying value. A bond with discounts, was issued at a lower price than his face value. The discount on bonds represent that difference.

It takes amortization while the time past, until at maturity, their balance is zero, to represent the reality, the obligation for the company is for the face value, so the carrying value of bonds payable should equal the face value.

Last, because the bonds are due in ten-year their place is the long-term liabilities. As their obligation are not within the 12 month period to qualify as short-term

8 0
3 years ago
a consumer has $100 to spend on two goods X and Y with prices $3 and $5 respectively. drive the equation of the budget line​
kotegsom [21]

Answer:

3X + 5Y = 100

Explanation:

Given that a consumer has $ 100 to spend on two goods X and Y with prices $ 3 and $ 5 respectively, the equation that represents this distribution is the following:

3X + 5Y = 100

Thus, the consumer may consume different combinations of products, as long as the sum of both amounts is $100 as a final result. For instance:

3x20 + 5X8 = 100

60 + 40 = 100

3x5 + 5x17 = 100

15 + 85 = 100

5 0
3 years ago
a1. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adj
Pavel [41]

Answer:

a1. Dr Depreciation Expense $8,000

Cr Accumulated Depreciation $8,000

a2. $24,000

b2. December 31

Dr Wages Expenses $440

Cr Wages payable $440

Explanation:

a1. Preparation of the adjusting entry for the first year using the straight-line depreciation method.

Dr Depreciation Expense $8,000

Cr Accumulated Depreciation $8,000

($40,000/5 years)

a2. Computation of the book value at the end of the second year of the equipment's life.

First step is to calculate the First year Book value

First year Book value=$40,000/5 years

First year Book value=$8,000

Second step is to calculate the Second year Book value

Second year Book value=($40,000+$40,000)/5 years

Second year Book value=$80,000/5 years

Second year Book value=$16,000

Now let compute the book value at the end of the second year of the equipment's life.

Book value at the end of the second year=$8,000+$16,000

Book value at the end of the second year=$24,000

Therefore the Book value at the end of the second year will be $24,000

b1. Preparation of the adjusting entry on December 31

December 31

Dr Wages Expenses $440

Cr Wages payable $440

($2,200/5 years)

3 0
3 years ago
Other questions:
  • 9. Objective of IS security is to ensure
    13·1 answer
  • Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder
    12·1 answer
  • Mary and Jeff entered into a partnership agreement. However, the agreement didn't state how income and losses would be divided.
    9·2 answers
  • Assume the required reserve ratio is 12 percent and that the commercial banking system has $110 million in excess reserves. The
    13·1 answer
  • files kept within a department are -------------- files a. decentralized b. transactional c. direct access d. centralized
    11·1 answer
  • A pressurized spray painter was purchased on April 1 of the fiscal year for $3,900. It has a useful life of 4 years and a residu
    9·1 answer
  • Read the U.S. Constitution. Did our founding fathers do a good job in shaping the laws of the land? Explain.
    11·1 answer
  • If you start investing a little money now you will most likely have a lot more
    7·2 answers
  • What are the differences between the five-stage model of team development and the punctuated equilibrium model?
    14·1 answer
  • If there was important presentation and a conference you were invited to on the same day, how would you tackle it
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!