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
RoseWind [281]
3 years ago
5

You purchase a $500 bond that pays 2% coupon yield ($10), and the bond is currently trading for $400. What is the current yield?

Business
1 answer:
Thepotemich [5.8K]3 years ago
6 0

Answer :

2.5%

Step by Step Explanation:

Face value = $500

Coupon yield = 2%

Income earned on he bond each year is at the rate of 2%.

Annual coupon = $10

Current bond price = $400

Formula for current yield = \frac{Annual coupon amount}{Current bond price}

                                        = \frac{10}{400} ×100

                                        =  2.5%

Hence, the current yield is 2.5%

You might be interested in
When a firm pursues a(n) ___________, it sells the same products or services in both domestic and foreign markets.
vladimir1956 [14]

When a firm pursues a(n)  localization strategy, it sells the same products or services in both domestic and foreign markets.

Multinationals choose from four basic international strategies: (1) international, (2) multinational, (3) global, and (4) transnational. These strategies differ between the two strains. 1) Focus on low cost and efficiency, and 2) Respond to local culture and needs.

A company can obtain its three main benefits by successfully deploying a foreign markets strategy: (1) increased market size, (2) economies of scale and learning, and (3) location advantages. I can. Greater market size is achieved by expanding beyond the company's home country.

Multinational Corporation chooses from their three basic international strategies: (1) multidomestic, (2) Global, and (3) Transnational. These strategies differ in their focus on achieving global efficiencies and addressing local needs.

Learn more about foreign markets at

brainly.com/question/20860719

#SPJ4

4 0
1 year ago
Can someone help with this?
bagirrra123 [75]

Answer:

profit

Explanation:

4 0
3 years ago
Read 2 more answers
When a title insurance policy is being issued, the public records are searched and the title company's record of title is contin
matrenka [14]

Answer: A report of title or commitment for title insurance

Explanation:

This kind of notification or document is also called ''title commitment'' or ''a preliminary title report'' and it is using in this case when a title insurance policy is being issued.

It will do the disclose and give people the copies and claims that are found by that company where the title is from. A document will be delivered to the buyer without any cost to the one who was buying something after opened escrow.

7 0
3 years ago
Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 15%. I am buying a firm with a
kondor19780726 [428]

Answer:

The correct solution is "$6,564.01". A further solution is given below.

Explanation:

The given values are:

beta,

= 1.6

market return,

= 15%

cash flow,

= $2,000

risk free rate of interest,

= 3%

Now,

The stock return will be:

= 3+ 1.6\times (15-3)

= 3+ 1.6\times 12

= 22.2 \ percent

The actual worth of the firm will be:

= \frac{cash \ flow}{rate \ of \ return}

= \frac{2000}{22.2 \ percent}

= \frac{2000}{0.222}

= 9,009

With 0.8 beta, the stock return will be:

= 3+ 0.8\times (15-3)

= 3+ 0.8\times 12

= 12.6 \ percent

So that I'm paying for the firm,

= \frac{2000}{12.6 \ percent}

= \frac{2000}{0.126}

= 15,573.01 ($)

Hence,

I'm paying,

= 15,573.01-9,009

= 6,564.01 ($)

6 0
3 years ago
Sen Corp., a publicly-traded, mid-cap company, wanted to obtain $30 million in new capital to expand its Iowa plant. Cost of cap
Delvig [45]

Based on the information given, the approach that describes the strategy that was used by the company is that Sen Corp. should issue the debentures since the after-tax cost of debt (5.347%) would be less than the cost of equity (5.825%).

A debenture simply refers to the rule of bond that's unsecured by collateral. Debentures typically rely on the reputation of the issuer.

From the complete information, the company wants to obtain $30 million in new capital to expand its plant. Therefore, it's appropriate to issue the debentures since issue the cost of equity is more than the after-tax cost of debt.

Learn more about debentures on:

brainly.com/question/1192960

5 0
2 years ago
Other questions:
  • When a salesperson asks the buyer "do you see how this product will benefit your organization?" he or she is using a(n) _____.​?
    15·1 answer
  • The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:1st Quarter 2nd Quarter 3rd Quarter 4t
    8·1 answer
  • Research asking employees about their benefits has shown that employees:
    15·1 answer
  • Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operat
    10·1 answer
  • Peete Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should
    13·1 answer
  • Paxson began 2014 with an inventory T-account debit balance of $22,000. In 2014, its inventory purchases amounted to $42,000, an
    7·1 answer
  • A study has been conducted to determine if Product A should be dropped. Sales of the product total $500,000; variable expenses t
    15·1 answer
  • The following information is available for the year ended December 31: Beginning raw materials inventory$12,000 Raw materials pu
    6·1 answer
  • The clerical and editorial employees in a publishing house need to be at their desks by 8:00 AM and follow a set of precise proc
    15·1 answer
  • The Finishing Department had 6,800 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to ma
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!