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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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The gross profit is more inportant than the net profit

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Which one of the following businesses would be the most difficult to get funding for
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You have not suggested a list considering your question asks "..following businesses..."
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A firm with $600,000 in sales, cash on hand of $750,000, liabilities of $200,000 and total assets of $1 million has a total asse
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 Total Asset Turnover = 0.6 times

                       

Explanation:

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5 0
3 years ago
A high coupon bond is likely to be called by the issuing firm if (a) required yields rise. (b) it has a high call premium. (c) i
monitta

Answer:

Correct option is D

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6 0
3 years ago
Read 2 more answers
France and England both produce cheese and cloth under conditions of constant opportunity costs. France will have a comparative
dem82 [27]

Answer:

D

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

For example, England produces 10 yards of clothes and 5 kg of cheese. France produces 5 yards of clothes and 10 kg of cheese.  

for England,  

opportunity cost of producing clothes = 5/10 = 0.5

opportunity cost of producing cheese = 10/5 = 2

for France,  

opportunity cost of producing cheese = 5/10 = 0.5

opportunity cost of producing clothes = 10/5 = 2

England has a comparative advantage in the production of clothes and France has a comparative advantage in the production of cheese

5 0
3 years ago
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