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Bumek [7]
3 years ago
7

Sweet Sue Foods has bonds outstanding with a coupon rate of 5.50 percent paid semiannually and sell for $1,917.12. The bonds hav

e a par value of $2,000 and 17 years to maturity. What is the current yield for these bonds
Business
1 answer:
Darina [25.2K]3 years ago
7 0

Answer:

Current yield=5.74%

Explanation:

Calculation for the current yield for these bonds

Current yield = (.055× $2,000)/$1,917.12

Current yield =$110/$1,917.12

Current yield=0.0574*100

Current yield=5.74%

Therefore the current yield for these bonds will be 5.74%

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A 30-year U.S. Treasury bond has a 4.0 percent interest rate. In contrast, a 10-year Treasury note has an interest rate of 2.5 p
iVinArrow [24]

Answer:

1.0 percent

Explanation:

Expected real rate of return can be described as the proportion of the annual return or profit from an investment after deducting inflation.

The purpose of the real rate of return is to show the accurate and actual purchasing power of a certain sum of money over a period of time.

An investor can therefore know what is the real return of a nominal return when the nominal interest is adjusted for inflation.

From the question, we have:

Interest rate on 10-year Treasury note = 2.5 percent

Expected Inflation = 1.5 percent

Therefore, the expected real rate of return on the 10-year Treasury note is derived by subtracting the 1.5 percent expected Inflation from the 2.5 percent interest rate on 10-year Treasury note as follows:

Expected real rate of return on the 10-year Treasury note = 2.5 - 1.5

                                                                                                = 1.0 percent

Therefore, the expected real rate of return on the 10-year U.S. Treasury note is 1.0 percent.

All the best.

4 0
3 years ago
In the capitalization versus expensing case the main ethical issue is whether gloria hernandez should?
nata0808 [166]

In the capitalization versus expensing case the main ethical issue is whether Gloria Hernandez should capitalize or expense one millions dollars of expenditures.

<h3>What is meant by capitalization?</h3>

This is the term that is used in accounting to talk about the fact that an item can be recorded as an asset. What this means is that the expenditure is going to be made to appear in the balance sheet and it would not have to appear in the income statement.

Hence we have to say that In the capitalization versus expensing case the main ethical issue is whether Gloria Hernandez should capitalize or expense one millions dollars of expenditures.

Read more on capitalization here: brainly.com/question/1293334

#SPJ1

4 0
2 years ago
A firm knows that Mike’s income elasticity of demand for hair ties is 5 while for Sally it is 0.2. A firm can reason that a hair
bonufazy [111]

Answer:

1) Luxury

2) Necessity

Explanation:

1)The hair tie is a luxury good for Mike because Mike has a income elasticity of 5 which means that if mike's income decreases 1% his demand for the good decreases 5%, which shows that his demand for this good is highly sensitive to his income which is a characteristic of luxury goods, as you only buy luxury goods when your income increases.

2) It is a necessity for Sally because her income elasticity to the good is 0.2 which means every 1% change in income changes her demand by just 0.2%, which shows demand is not very sensitive to income and the quantity she buys them in dont rely much on her income, which is a sign of a necessity, you buy a certain amount of necessities regardless of your income.

6 0
3 years ago
Tax refunds:
shepuryov [24]
The answer is A, occur when a taxpayer's income tax withholding exceeds what they owe.
8 0
3 years ago
Assume that GDP per capita for two countries is displayed in plot with a ratio scale on the y-axis and a linear time scale (in y
jenyasd209 [6]

Answer:

The correct answer that fills the gaps are: constant ; increasing.

Explanation:

GDP per capita, income per capita or income per capita is an economic indicator that measures the relationship between the level of income of a country and its population. For this, the Gross Domestic Product (GDP) of said territory is divided by the number of inhabitants.

The use of per capita income as an indicator of wealth or economic stability of a territory makes sense because through its calculation national income is interrelated (through GDP in a specific period) and the inhabitants of this place.

The objective of GDP per capita is to obtain data that somehow shows the level of wealth or well-being of that territory at a given time. It is often used as a measure of comparison between different countries, to show differences in economic conditions.

7 0
3 years ago
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