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fgiga [73]
4 years ago
8

You own a bond that has a 6 percent annual coupon and matures 5 years from now. You purchased this 10- year bond at par value wh

en it was originally issued. Which one of the following statements applies to this bond if the relevant market interest rate is now 5.8 percent?a. The current yield-to-maturity is greater than 6 percent.
b. The current yield is 6 percent.
c. The next interest payment will be $30.
d. The bond is currently valued at one-half of its issue price.
e. You will realize a capital gain on the bond if you sell it today.
Business
1 answer:
lubasha [3.4K]4 years ago
7 0

Answer:

b. The current yield is 6 percent.

Explanation:

Using a financial calculator, input the following to find the price of this bond today;

N= 5

FV = 1,000

I = 5.8%

Coupon payment; PMT = 6%*1000 = 60

then compute price; CPT PV = 1008.47

Current yield = Coupon PMT / Current price

Current yield = 60/1008.47 = 0.059 or 6% rounded to the nearest whole number. This makes choice B correct.

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What other inspiring realizations helped Andrew Feld come up with the idea for his startup? List and rank them in order accordin
soldier1979 [14.2K]

The other inspiring realizations that helped Andrew Feld to come up with the idea for his startup, Fresh Patch, were as follows:

  • <u>Idea:</u> His pet gave him some idea that he could build a patch bathroom to enable his dog to ease whenever nature comes calling.  When he tried it out with the dog and saw the success, he engaged his need for income to start marketing the product to others.

  • <u>Necessity:</u>  Since he was unemployed with a pregnant wife, he realized that he could do something with his time.  This made him to try the bathroom for dogs idea that his pet needed.  He needed some income to cater for his family.

  • <u>A Big Vision:</u> The other realization is that the first year could be tough and will-breaking.  Then, he also realized that a big vision could be realized if one works hard at it.

Thus, these realizations greatly helped Andrew Feld for his startup, Fresh Patch.

Read more about inspiring ideas for business startups at brainly.com/question/11671311

6 0
3 years ago
Purple Sage Producers Inc. is an oil drilling company. The company paid a dividend of $1.75 last year, and, in the past, its div
tino4ka555 [31]

Answer:

Option A is the correct one.

<u>The signaling hypothesis</u>

Explanation:

The idea that many actions taken by economic agents are motivated chiefly by the wish to send a positive 'signal' to other agents, rather than by their ostensible purpose. This can be a means of overcoming the problem of asymmetric information between transactors.

This strategy was implemented by the Purple Sage Producers Inc. and this resulted in increased stock price.

5 0
3 years ago
Isabella was hit by a car while she was walking on the road and sustained minor injuries. She filed a case against the car drive
Y_Kistochka [10]

Answer:

B) Individual differences in perception

Explanation:

We all perceive things differently than other people, or in other words, we all see thing differently than other people. Depending on our mood and where we actually are, we  perceive things differently. We also have the tendency to fill in blanks with some preconceived ideas, e.g. a person that suffered a prior accident will immediately imagine an action sequence resembling their own experience and will combine it with what they actually saw.

8 0
3 years ago
Lewis spends a lot of time socializing while at work. In his interactions with Walid, he constantly asks personal questions and
PolarNik [594]

Answer:

task versus relationship priority.

Explanation:

A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.

This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, workers working as a team usually interact with the other team members and as a result, this enhances performance and strengthen the level of relationship they share.

In this scenario, Lewis spends a lot of time socializing while at work and he constantly asks Walid personal questions and shares information about his family and hobbies. This actions frustrates Walid who is only interested in getting his work done. This illustrates task versus relationship priority, one of the intercultural communication challenges in business contexts.

6 0
3 years ago
What do you understand by financial intermediaries?
GrogVix [38]

Answer:

A financial intermediary is an entity that acts as the middleman between two parties in a financial transaction, such as a commercial bank, investment bank, mutual fund, or pension fund.

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7 0
3 years ago
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