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Anarel [89]
3 years ago
13

One year ago, ABC Widgets, Inc., funded an expansion to its manufacturing facilities by issuing a 20-year first mortgage bond. T

he bond is secured by the new building and land. The bond was issued with a 5.5% coupon and is currently rated Aa. The current market price of the bond is 105 resulting in a current yield of approximately A) 4.99%. B) 5.24%. C) 5.50%. D) 5.61%.
Business
1 answer:
MA_775_DIABLO [31]3 years ago
5 0

Answer:

Current yield = 0.05238 or 5.238% rounded off to 5.24%

option B is the correct answer

Explanation:

The current yield is the return on investment in form of interest or dividend expressed as a percentage of the current market value of the instrument. Thus the formula for current yield on a bond will be,

Current yield = Interest per year / Current market price

Assuming that the value of bond is 100. The interest or coupon payment on bond will be = 100 * 5.5% = $5.5 per annum

Current yield = 5.5 / 105 = 0.05238 or 5.238% rounded off to 5.24%

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The typical family on the Planet Econ consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk. In 2016, pizzas cost $10 eac
jasenka [17]

Answer:

increase in cost of living of 9.09%

Explanation:

The cost of living for 2016 is goven as

(10 pizzas*$10) + (7 jeans * $40)+ (20 gallons of milk * $3)

= 100 + 280 + 60= $440

The cost of living from 2017 is

(10 pizzas*$14) + (7 jeans * $40)+ (20 gallons of milk * $3)

= 140 + 280 + 60

= $480

The percentage increase in cost of living between 2016 and 2017= (Cost of living in 2017/cost of living in 2016)* 100

= {480/440}* 100

= 109.09%

So there was a increase in cost of living of 9.09%

8 0
3 years ago
What might be a consideration in deciding where to buy something?
ch4aika [34]
All of the above sounds about right
7 0
3 years ago
Read 2 more answers
Pete qualifies for a home office deduction. The amount of space devoted to business use is 300 square feet of the total 1,200 sq
mote1985 [20]

Answer:

Rent is $2400

utilities other than cellphone is $625

Total home office expenses is $3025

Explanation:

firstly we need to calculate the percentage of how much in total does the office take in the apartment so we will say (300 square feet/1200 square feet) x 100

which is 25% so then to get the rental expense of the office we will say :

25%x$9600 = $2400 we say 25% which is office space in the apartment multiplied by the total apartment rental to get the office rent expense.

Then for the utilities we will say 25%x$2500 = $625 we multiply like this because the office uses 25% of all the apartment utilities .

thereafter the total home office expenses is the sum  of both the rental office expense plus the the utilities other than telephone for the home office expense:

$625 + $2400 = $3025 then we get total home office expenses.

8 0
3 years ago
Based on his​ preferences, Bill is willing to trade 4 movie tickets for 1 ticket to a basketball game. If movie tickets cost $8
nexus9112 [7]

Answer:

The correct option is option e)

not trade movie tickets for basketball tickets because his marginal utility per dollar spent on movie tickets is greater than his marginal utility per dollar spent on basketball tickets.

Explanation:

The cost of one movie ticket is $8 then Bills' four tickets will be $32.

The cost of a basketball ticket is $28.

Therefore if bill should trade 4 movie tickets for a basketball ticket he will make a loss of $ 4 so it is advisable for bill not to trade movie ticket for basketball ticket. And again his marginal utility per dollar spent on movie tickets is greater than his marginal utility per dollar spent on basketball tickets.

6 0
3 years ago
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The jou
Olenka [21]

Answer and Explanation:

The journal entry is given below:

Work in process inventory Dr $100,000

   To raw material inventory $100,000

(being the usage of the direct material is recorded)

here the work in process is debited as it increased the assets and credited the raw material inventory as it decreased the assets

8 0
2 years ago
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