1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Hejl Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The co
zepelin [54]

Answer:

Spending variance= $43 favorable

Explanation:

Giving the following information:

Standard:

Fixed costs= $210

Variable cost per job= $86

Variable cost per meal= $15

The actual activity was 28 jobs and 217 meals. The actual cost for catering supplies in March was $5,830.

To calculate the spending variance, we need to use the following formula:

Spending variance= (actual costs - standard costs)

Standard costs= 210 + 28*86 + 15*217= 5,873

Spending variance= 5,830 - 5,873

Spending variance= $43 favorable

8 0
2 years ago
Joe decided to quit his computer-programming job (where he was earning $48,000 per year) to start his own software business. For
Mrrafil [7]

Answer:

b. −1,002.5

Explanation:

economic profit = accounting profit - opportunity costs

  • accounting profit = revenue - maintenance and insurance = $96,000 - $30,240 = $65,760
  • opportunity costs = the lost salary as a computer programmer + money he could earn by selling the land lot and investing = $48,000 + ($395,000 x 4.75%) = $66,762.50

economic annual profit = $65,760 - $66,762.50 = -$1,002.50

7 0
3 years ago
Banks pay interest to customers through a
nexus9112 [7]

Answer:

mortgage account

For me:

I like that among us account perfect

3 0
2 years ago
Read 2 more answers
Which situation best describes the role of businesse in the circular flow of goods
Lyrx [107]
I think is 475848 because I just timed by 48 so I got 475848
3 0
3 years ago
Freer trade, advances in information technology, and more global customers are pressuring many large global companies to:
Volgvan

Firms are often involve in different kinds of trade. Freer trade, advances in information technology, and more global customers are pressuring many large global companies to shift from functional structures to geographically based divisionalized structures.

There are great advances in information technology (IT). Firms often get benefits of free trade in IT as they are able to expand their business into other different new areas with less effective charges.

FTA is known to be very good to optimal sharing of resources in the region as it helps to boast the efficiency of economic activities and also increase the stock of a country's technology.

Learn more about trade from

brainly.com/question/3520350

7 0
2 years ago
Other questions:
  • Assume the indirect method is used to compute cash flows from operations. For each item listed below, indicate the effect on net
    14·1 answer
  • If the unemployment rate is equal to the natural rate of unemployment, then the economy's
    15·1 answer
  • An attempt to reduce inflation requires​ _____________ fiscal​ policy, which causes real GDP to​ _________ and the price level t
    6·1 answer
  • Court Inc. produces two types of products - Gizmos and Gadgets. The following information is available related to each product:
    14·1 answer
  • Concord has the following inventory information. July 1 Beginning Inventory 30 units at $19 $570 7 Purchases 80 units at $18 144
    10·1 answer
  • Given the following:A firms projected free cash flows of2021 $20 million2022 $30 million2023 $50 millionAfter 2023, the growth r
    9·1 answer
  • Do u think that the production employees should recieve the same fringe benefits and share of profits as a factory manager? Just
    8·1 answer
  • What are the limitations and constraints that this form of business has on the operations of the Green Bay Packers?
    14·1 answer
  • If $25,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected
    10·1 answer
  • Identify a recent business trend that could be contributing to the increased number of collusive frauds.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!