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astraxan [27]
3 years ago
13

Determine the current yield on a corporate bond investment that has a face value of $1,000, pays 8 percent, and has a current pr

ice of $940.
Business
1 answer:
Black_prince [1.1K]3 years ago
8 0

Answer:

8.5%

Explanation:

Calculation to Determine the current yield on a corporate bond investment

First step

Amount of annual interest

=Face value × Interest rate

=$1,000 × 0.08

=$80

Now let calculate the Current yield

Current yield =Annual interest amount / Current price

=$80/ $940

=0.085, or 8.5%

Therefore the current yield on a corporate bond investment is 8.5%

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Todd Williamson and Jim Miranda started their business, Broad Reach Sailing, as a way to earn a living doing something they love
ValentinkaMS [17]

Answer:

C. More leisure time

Explanation:

Leisure time is the time spent away from work, business, school, or doing domestic chores. Spending time in necessary activities such as eating or sleeping is not leisure. Leisure activities include cycling, taking holidays, hiking, or cycling.

Starting a business is not a leisure activity. Engaging in recreation activities away from the enterprise is leisure.

4 0
3 years ago
Albert Searchware is a type of search engine used at company websites to handle customer questions. The firm is trying to determ
SpyIntel [72]

Answer:

The correct option that should be employed by the company is C) .

Explanation:

Company has identified that its search engine  ( Albert searchware ) is in the growth stage ( which is the second stage in product life cycle ) of its product life cycle , which means here the promotional objective of the growth stage of product life cycle for the company is to persuade its consumers and often direct marketing is the best promotional element that a company can choose, and so the option C is the one that comes closet to this idea.

8 0
4 years ago
What are 4 status types that can be assigned to an estimate in QuickBooks Online?
Kipish [7]

Answer:

The status of estimates in QuickBooks Online is Pending, Accepted, Closed and Rejected.

Explanation:

5 0
3 years ago
Booher Book Stores has a beta of 1.0. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 6%. The market ri
mart [117]

Answer:

Cost of equity =  10.5%

Explanation:

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta. </em>

Under CAPM, Ke= Rf + β(Rm-Rf)  

Rf-risk-free rate (long-term i.e 10 year treasury bill rate), β= Beta, Rm= Return on market., Ke- Return on equity (cost of equity)

This model can be used to work out the cost of equity as follows:

Ke= Rf + β (Rm-Rf)

Rf- 6%, β= 1.0, Rm- 10.5, E(r)- ?

Ke = 6% + 1.0× (10.5 -6)% = 10.5%

Ke  = 10.5%

Cost of equity =  10.5%

3 0
4 years ago
All of the following statements are true about non-contributory defined benefit retirement plans EXCEPT: A contribution amounts
Kitty [74]

Answer: D. contribution amounts remain fixed based regardless of age

Explanation:

The statements that are true about non-contributory defined benefit retirement plans include:

• contribution amounts vary based upon the age of the person covered under the plan.

• larger contributions are made for older plan participants nearing retirement than for younger ones.

• once benefit payments start, the amount of the benefit is fixed.

It should be noted that in a defined benefit retirement plan, there is variation in the contribution amounts which depends on the individual's age that's covered under the plan. Therefore, the statement that "contribution amounts remain fixed based regardless of age" is incorrect.

7 0
3 years ago
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