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marissa [1.9K]
3 years ago
5

The yield on a one-year bond is currently 3% and the expected yield on one-year bonds for the next two years is 5% and 4%. If th

e liquidity premium is 1.75%, what is the yield on a bond with three years to maturity
Business
1 answer:
sveticcg [70]3 years ago
4 0

Answer:

5.75%

Explanation:

The computation of the  yield on a bond with three years to maturity is shown below:

Given that

Yield on a one-year bond is 3%

The expected yield on one-year bonds for the next two years is 5% and 4%

And, the liquidity premium is 1.75%

So, the yield on a bond with three years to maturity is

= (3% + 5% + 4%) ÷ 3 years + 1.75%

= 4% + 1.75%

= 5.75%

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Mkey [24]

Answer:

The answer is $30000

Explanation:

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<u>Less cost of sales</u>

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<u>Less </u>closing stock                                      <u>6000</u>

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Gross profit                                                                                     92000

<u>Less</u> operating expenses                                                              <u>62000</u>

Operating income                                                                           <u>30000</u>

The operating income is<u> $30000</u>

4 0
3 years ago
On July 1, Wildhorse Co. purchases 560 shares of its $5 par value common stock for the treasury at a cash price of $10 per share
vodomira [7]

Answer:

Please see the journal entries for the two treasury stock transactions.

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To Cash account Cr $5,600

(Being the purchase of treasury stock that is recorded)

For recording the above, treasury stock was debited because it increased the treasury while cash credited because it decreased the assets.

• Sale of treasury stock

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To paid in capital- treasury stock Cr $370

Explanation

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