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NARA [144]
3 years ago
11

What is the approximate market value of a $1,000 corporate bond that pays 8 percent interest when comparable bonds are paying 8

percent interest?A. $800B. $900C. $1000D. $1125E. $1625
Business
1 answer:
Alex3 years ago
6 0

Answer:

C. $1000

Explanation:

The computation of the approximate market value is shown below:

Current yield = Annual coupon payment ÷ market value

8% = ($1,000 × 8%) ÷ market value

8% = $80 ÷ market value

So, the market value is

= $80 ÷ 0.08

= $1,000

Hence, the approximate market value is $1,000

Therefore the correct option is c.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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4 0
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What is the historical development of accounting​
Vaselesa [24]

Answer:

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Explanation:

4 0
3 years ago
Using accrual accounting, expenses are recorded and reported only: _A. when they are incurred and paid at the same time. B. if t
sleet_krkn [62]

Answer:

C. when they are incurred, whether or not cash is paid.

Explanation:

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In fact, the term "accrued expense" means an expense that has been incurred, but not yet paid.

One common example of an accrued expense is accrued wages:

Suppose that a firm hires a worker on March 1, for a wage of $1,000 dollars per month, that is due to be paid at the end of the month (March 31). This worker is earning $33 per day. By March 4, the firm should have recorded accrued wages for $132 ($33 x 4 days) even if no payments will be made until March 31.

4 0
3 years ago
All financial statements:_________
Anastasy [175]

Answer:

a) help to evaluate what happened in the past.

Explanation:

The financial statement interprets the financial performance, profitability, position of the company. It involves the income statement, balance sheet, cash flow statement, etc through which the business could be analyzed in a better way

Also it helps to analyze and evaluate what is happened in the past

Therefore the option a is correct

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