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astraxan [27]
3 years ago
11

A coupon bond that pays interest of $70 annually has a par value of $1,000, matures in 5 years, and is selling today at a $77.75

discount from par value. The current yield on this bond is _________.
Business
1 answer:
Umnica [9.8K]3 years ago
8 0

Answer:

Current Yield = 0.07590 or 7.590%

Explanation:

A current yield refers to the annual return that a security provides based on the interest or dividend payments it makes expressed as a percentage of it current price. Thus, the current yield on bond can be calculated as follow,

Current Yield - bond = Interest payment per year / Current price

Current Yield - Bond = 70 / (1000 - 77.75)

Current Yield = 0.07590 or 7.590%

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Answer: Option D

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3 0
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A bank efficiency ratio is the ratio of a bank's expenses to its revenue, expressed as a percentage. If a bank has \$222$222doll
Ann [662]

Answer:

$296 million

Explanation:

Data provided in the question:

Expenses of the bank = $222 million

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Now,

The Efficiency ratio is given using the formula as:

Efficiency ratio = \frac{\textup{Expenses}}{\textup{Revenue}}

thus,

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on substituting the respective values, we get

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or

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The formula for the simple deposit multiplier is :______
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