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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%

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Affluenza" is a condition where: select one:
Taya2010 [7]
<span>Option A. Greater consumption leads to unhappiness. Affluenza as a term was used as far back as the 50s by critics of consumerism to describe a painful, contagious, socially transmitted condition of overload, debt, anxiety, and waste resulting from the dogged pursuit of more. This pursuit leads to more and more unhappiness. In their book "When Too Much is Never Enough" Clive Hamilton and Richard Denniss pose the question: "If the economy has been doing so well, why are we not becoming happier? They argue that affluenza causes overconsumption because there's excess or surplus for rich consumers.</span>
8 0
3 years ago
You are reviewing your client’s Multicurrency company Balance Sheet, and the balance as of the previous fiscal year-end for thei
qaws [65]

Answer:

Foreign exchange loss

Explanation:

A foreign exchange gain/loss is normal for companies that operate in foreign countries. E.g. you prepared your financial statements by converting the foreign currency into your local currency, in this case you converted Canadian dollars to US dollars. But then the exchange rate between the currencies changes. If the value of the Canadian dollar's value increased after conversion, then you gained, and an adjustment must be made to show that gain. But if the Canadian dollar's value decreased after the conversion, then you lost (what happened here) and an adjusting entry must be made to report the loss.

In order to correct his, you must:

Dr Foreign exchange gain/loss 10

    Cr Canadian bank account 10

4 0
3 years ago
Baxter Company reported a net loss of $13,000 for the year ended December 31. During the year, accounts receivable decreased by
stepan [7]

Answer:

a. used net cash of $2,000

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net loss -$13,000

Adjustment made:

Add : Depreciation expense $4,000

Add: Decrease in accounts receivable $5,000

Less: Increase in inventory -$8,000

Add: Increase in accounts payable $10,000

Total of Adjustments $11,000

Net Cash flow from Operating activities                   -$2,000

6 0
2 years ago
Consider two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.2. Stock B has an expected return of 14% and
barxatty [35]

Answer:

B; it offers an expected excess return of 1.8%

Explanation:

Here are the options :

A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%

to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

Stock A = 5% + 1.2(9% - 5%) = 9.8%

Stock B = 5% + 1.8(9% - 5%) = 12.20%

The next step is to determine the excess return

stated expected return - calculated expected return = excess return

Stock A's excess return = 10% - 9.8% - 0.2%

Stock B's excess return = 14 - 12.20 = 1.8%

Security B would be considered because it has a higher excess return

8 0
2 years ago
________ is one of the means of motivation and control of sales representatives in relationship-oriented cultures like Japan. Mu
uranmaximum [27]

Answer:

A group bonus system

Explanation:

In relationship-oriented cultures, group bonuses are very common, and they are not like the regular yearly bonuses given out at Christmas, specially in Japan. In Japan, there are two bonuses per year, one paid during mid-year and the other one at the end of the year. These bonuses can amount to 3-6 months worth of salary, but they are also paid to the whole group of workers. That means that either everyone in the team gets a bonus or no one does.

Relationship-oriented cultures are based upon the well being, motivation and satisfaction of the whole team.

7 0
3 years ago
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