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Crazy boy [7]
3 years ago
6

Bond A has a 9% annual coupon, while Bond B has a 7% annual coupon. Both bonds have the same maturity, a face value of $1,000, a

n 8% yield to maturity, and are noncallable. Which of the following statements is CORRECT?a. Bond A's current yield is greater than that of Bond B. b. If the yield to maturity for both bonds immediately decreases to 6%, Bond A's bond will have a larger percentage increase in value. c. Bond A trades at a discount, whereas Bond B trades at a premium. d. If the yield to maturity for both bonds remains at 8%, Bond A's price one year from now will be higher than it is today, but Bond B's price one year from now will be lower than it is today. e. Bond A's capital gains yield is greater than Bond B's capital gains yield.
Business
2 answers:
harina [27]3 years ago
6 0

Answer:

E

Explanation:

Since the annual coupon, that is the discount enjoyed on this service is higher for A than B that is 9% against 7%. Bond A's capital gains yield is greater than Bond B's capital gains yield.

klasskru [66]3 years ago
5 0

Answer:

Anwer is E that is Bond A's capital gains yield is greater than Bond B's capital gains yield.

Explanation:

Since the yearly coupon, that is the markdown delighted in on this administration is higher for A than B that is 9% against 7%. Security A's capital increases yield is more noteworthy than Bond B's capital additions yield.

You might be interested in
Which law most likely prompted organizations to create codes of ethics and install ethics hotlines?
MAVERICK [17]

Answer:

B) Federal Sentencing Guidelines for Organizations Act.

Explanation:

The Federal Sentencing Guidelines for Organizations Act (FSGO) was passed on November, 1991, and it provides a guideline for organizations' compliance and ethics programs. It applies to virtually all types of private organizations, including corporations, partnerships, non-profits, labor unions, etc.

7 0
3 years ago
When demand is unit elastic, price elasticity of demand equals a. 1, and total revenue and price move in the same direction. b.
yawa3891 [41]

Answer:

a. 1, and total revenue and price move in the same direction

Explanation:

Unit elasticity of demand is when a change in price leads to a proportional change in quantity demanded.

A good has a unit elastic demand when its coefficient of elasticity is equal to one.

If price increases by 20% , quantity demanded falls by 20%.

If price falls by 20%, quantity demanded increases by 20%.

I hope my answer helps you.

4 0
2 years ago
Goodell Corporation just paid its annual dividend of $1.75, today. Dividends for the Goodell Corporation are expected to increas
AlekseyPX

Answer:

current price of Goodell Corporation stock is $48.26

Explanation:

given data

annual dividend = $1.75

expected to increase 1 year = 27.5 percent

expected to increase 2 year = 13.8 percent

expected to increase per year = 5 percent

required rate of return = 10 percent

solution

we get here first dividend that is

D1 = 1.75 × (1.275) = 2.23    ...............1

D2 = 2.23 × (1.138) = 2.54    ...............2

D3 = 2.54 × (1.05) = 2.67      ...............3

and

year 2 price will be

P2 = D3 ÷ (R – g)    ...............4

P2 = 2.67 ÷ (0.10 - 0.05)

P2 = 53.4     ...............5

so current price will be

P = 2.23 ÷ (1.10) + 2.54 ÷ (1.10)2 + 53.40 ÷ (1.10)2

P = $48.26

4 0
2 years ago
Customer complaints communicated directly to the company and no one else are important because Group of answer choices they can
OverLord2011 [107]

the correct answer is (e) which is all of the above.

Explanation: Customers are king, their satisfaction is the ultimate goal for a business.  Unsatisfied customer are difficult to retain as well, hence, their problems  must always be welcomed and solved. It also aware the firm or give an idea about what needs to be changed or added. Negative word of mouth is also prevented. Its a chance for an organization to convert dissatisfied customer into highly satisfied customers and chances of retention increases as well.

3 0
3 years ago
bob katz and sally mander are a married couple with four children. total wages for 2018 equaled $102,400. stock which had been p
xxTIMURxx [149]

Answer:

Bob Katz and Sally Mander

Taxable Income for 2018:

= $78,200

Explanation:

a) Data and Calculations:

Total wages =                  $102,400

Gain from sale of stock =     5,200

Interest income =                      100

Total income =                 $107,700

less total deductions =     (29,500)

Taxable Income =            $78,200

b) Bob Katz and Sally Mander will have taxable income of $78,200 when the appropriate rate of tax is applied and the tax liability obtained, then the $1,500 tax credit will be deducted before arriving at the tax liability due.  

c) The short-term capital gain of $5,200 is taxed as ordinary income.  Since it is held for less than a year, it will be included in the taxable income for that year and it follows the same tax brackets as ordinary income.  On the other hand, the long-term capital gain of  $13,000 will attract a tax rate of 0 percent for a taxable income of $78,200.  Otherwise, it will attract a tax rate of 15 percent or 20 percent, depending on income level. This means that long-term capital gains tax rates are much lower than the ordinary income tax rate.

8 0
3 years ago
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