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
IceJOKER [234]
3 years ago
15

Bourdon software has 10.6 percent coupon bonds on the market with 17 years to maturity. the bonds make semiannual payments and c

urrently sell for 108.1 percent of par. what is the current yield on the bonds?
Business
1 answer:
Nimfa-mama [501]3 years ago
8 0

The Current yield on the bonds are calculated as :

Current yield = Annual coupon payments/ Current price

Here, we assume the face value of the bond to be $1000

Annual coupon payments are 10.6% of the face value or 0.106*1000 = 106

Current price = 108.1% of the face value = 1.081* 1000 = 1081

Current Yield = 106/1081

Current Yield = 0.098057 = 9.8057%

Current Yield = 9.81% (Rounded to two decimals)

You might be interested in
Assume the corporate tax view of capital structure. Your unleveraged cost of capital is 13%. Your corporate tax rate is 30%. You
sergejj [24]

Answer:

C. 11.05%

Explanation:

The computation of the cost of capital under the proposed leveraging is shown below;

cost of capital is

=Debt÷ value of leverged firm × ((unlevered cost of capital × (1 - tax rate))

=800 ÷ 1600 × ((13% + (13%) × (1 - 30%)))

= 11.0500%

hence, the cost of capital is 11.05%

8 0
3 years ago
What is a specific set of organizational practices, policies, and programs, plus a philosophy that actively supports efforts to
katovenus [111]

The specific set of organizational practices, policies, and programs, plus a philosophy that actively supports efforts to help employees achieve success at both work and home considered is -work-life effectiveness. This is further explained below.

<h3>What is organizational practices?</h3>

Generally, An organizational practice is the habitual application of knowledge inside an organization for the purpose of carrying out a certain function. This application of knowledge has developed over the course of time as a result of the history, people, interests, and activities of the organization.

In conclusion, The precise combination of corporate practices, policies, and programs, plus a mindset that actively supports efforts to assist individuals to achieve success at both work and home regarded called -work-life effectiveness.

Read more about organizational practices

brainly.com/question/17329622

#SPJ1

4 0
2 years ago
Arrange the steps to show the effects of contractionary fiscal policy. Tiles Inflationary pressure decreases. Government increas
lana [24]
<span>Government increases the tax rate.
Consumers have less money to spend.
</span>Producers manufacture fewer goods.
Inflationary pressure decreases.<span>

</span>
7 0
3 years ago
Read 2 more answers
In March 2007March 2007​, the U.S. unemployment rate was 4.44.4 percent. In August 2008 August 2008​, the unemployment rate was
eimsori [14]

Answer:

A Recession happened.

Explanation:

When the market sees a recession we see an increase in the unemployment rate due to cyclical unemployment whenever there in a business cycle even though the labor force was constant but in a recession companies face a lot of costs which become higher than their revenue so for example when there is a recession the cost of producing 1 more unit is actually higher than the revenue a firm gets from producing that 1 unit because marginal cost increases at a decreasing rate so they have to lay off people at a firm on that unit of production to maximize revenues.

7 0
3 years ago
The current sections of Birmingham Inc.’s balance sheets at December 31, 2019 and 2020, are presented here. Birmingham’s net
jekas [21]

Answer:

Net Income 193,000

Non-monetary terms:

Depreciation expense    25,000

amortization expense       10,000

gain on disposal          <u>     (7,000)   </u>

Adjusted Income            221,000

Change in Working Capital:

Increase in A/R        (27,000)

Decreasein Inv          17,000

Increase in Prepaid   (5,000)

Increase Accrued /P   11,000

Decreasein A/P         (6,000)

Change In Working Capital     (10,000)

From Operating Activities    211,000

Investing

Sale of Equipment  47,000

Financing

Bonds Issued   60,000

Cash Flow              318,000

Beginning Cash   99,000

Cash Flow           318,000

Ending Cash        417,000

Explanation:

We first remove the non.monetary concetps from the net income.

Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account

Increase in asset and decrease in liabilities represent cash outflow

while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)

6 0
3 years ago
Other questions:
  • Two gamblers bet $1 each on the successive tosses of acoin. Each has a bank of $6. What is the probability that:a They break eve
    11·1 answer
  • Swifty Corporation reported the following year-end information: Beginning work in process inventory $1080000 Beginning raw mater
    5·1 answer
  • Flozell Adams is a professional football player formerly with the Dallas Cowboys. He submitted a claim in arbitration against hi
    11·1 answer
  • Marshall Manufacturing has recently revamped its promotional strategy. Marshall now utilizes a system that combines all the elem
    10·1 answer
  • The commercial for-profit segment of the food-service industry is very narrow. true or fasle
    7·1 answer
  • The office memo read as follows: “there is a mandatory meeting at 3:00 PM on Thursday. The new sales numb The office memo read a
    6·2 answers
  • The Tampa Bay Lightning is preparing an advertising campaign in which it will contrast its products with those of named competit
    14·1 answer
  • All of the following are benefits of going to college EXCEPT…
    6·2 answers
  • Which of these is an example of an inelastic good?
    15·1 answer
  • An analyst gathers the following information about Meyer, Inc.: Meyer has 1,000 shares of 8% cumulative preferred stock outstand
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!