If the approximate market value for of a $1,000 corporate bond is $1,200 and it pays 6 percent interest, then what are comparable bonds paying?

Answers

Answer 1

The comparable bonds pay a 5% interest rate when the approximate market value of a $1,000 corporate bond is $1,200 and it pays 6 percent interest.

What are bonds?

A bond is a type of financial security in which the issuer owes the holder debt and is obligated depending on the terms to repay the principal of the bond as well as interest over a specified period of time.

Given that,

Approximate market value of $1,000 is $1,200

Interest rate is 6%

[tex]\rm\,Annual \; Interest = (face \; value)\times Interest \; rate\\ \rm\,Annual \;Interest = 1,000 \times 6\%\\ \rm\,Annual \;Interest = 60\\\\Calculation of comparable bond interest rate:\\\\Approximate \;bond \;value = \frac{Annual\; interest}{Comparable \;interest\; rate} \\\\1200 =\frac{60}{Comparable\; Interest \;Rate} \\\\Comparable\; Interest\; Rate = 5\%[/tex]

Hence, the comparable bonds pay a 5% interest rate.

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Related Questions

The period of time during which interest must be capitalized ends when.

Answers

The period in which interest must be capitalised ends when a fixed asset is certified okay for use

Capitalized Cost

Cost can be capitalised when organisations, firms purchase fixed assets, although the value is subsetible to depreciation over a period of time.

However, the idea behind cost capitalisation so that the asset still generate renue even though it will depreciat over time.

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Isaac is able to set aside $2,500 tax free each year out of his earnings to pay for eligible medical expenses. This is an example of a _____ account.

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This is an example of a flexible spending account because Isaac is able to set aside $2,500 tax free each year out of his earnings to pay for eligible medical expenses.

What is tax?

This is a compulsory levy, impose by government of a country on an individual or business entity.

The primary purpose of taxation is that it allows the government to allocate resources. Government use tax money to support expenses related to building and technology infrastructure.

Hence, this is an example of a flexible spending account because Isaac is able to set aside $2,500 tax free each year out of his earnings to pay for eligible medical expenses.

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The stock in Bowie Enterprises has a beta of 1.10. The expected return on the market is 12.40 percent and the risk-free rate is 3.21 percent. What is the required return on the company's stock

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Based on the beta of Bowie Enterprises stock, the expected return on the market, and the risk free rate, the required return should be 13.32%.

What is the required return?

You can find this using the Capital Asset Pricing Model:

Required return = Risk free rate + Beta x (Market return - risk free rate)

Solving gives:

= 3.21  + 1.10 x (12.40 - 3.21)

= 13.32%

In conclusion, the return is 13.32%.

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Jack is a gamer, and every time he plays at a gaming center, he pays five dollars using a card that he recharges electronically every week. It is evident that Jack uses _____ as the mode of payment

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E-Cash was a digital-based system that allowed for anonymous money transfers.

So, Jack here is using E-cash as a mode of payment.

How is E-cash important?

Since it combines technological ease with security features, electronic cash is an important idea in electronic payment systems via the internet.

Electronic Cash can be used to send and receive payments between consumers and merchants, as well as for any other type of financial transaction.

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The fact that taxpayers can deduct the amount they paid in interest on a home mortgage from the income they report on their tax returns is an example of Group of answer choices an entitlement program. a contributory program. an earned income tax credit. a tax expenditure.

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If taxpayers can deduct the amount they paid in interest on a home mortgage. This is an example of  a tax expenditure.

What is  a tax expenditure?

A tax expenditure can be defined as the process in which a tax payer can deduct money from their tax return.

Tax expenditures is important as it make use of deduction as well as  exemption among others  to reduce the amount that a tax payer file as tax return.

Therefore this is an example of a tax expenditure.

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The 10 million U.S. residents with the highest SES (and the best health care) outlive the 10 million with the lowest SES who live in rundown areas by about _____ years.

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The 10 million U.S. residents with the highest SES outlive the 10 million with the lowest SES who live in rundown areas by about  30 years.

What is socioeconomic status (SES)?

Socioeconomic status can be defined as the status of people in a society or community as based on the followings:

IncomeOccupationEducation

In the United State of America people who are educated and earn higher income including having the best health care tend to live longer compare to those who live in a very poor condition and has a  lowest SES.

Inconclusion 10 million U.S. residents with the highest SES outlive the 10 million with the lowest SES who live in rundown areas by about  30 years.

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Fidelity Investments is selling a real estate income mutual fund for $10.94 per share. The fund charges a load of 2.5%. What is the offer price? Multiple Choice $10.94 $10.67 $11.21 $11.48

Answers

If Fidelity Investments is selling a real estate income mutual fund for $10.94 per share. The offer price is: $11.21.

Offer price

Using this formula

Offer price=Real Estate income+(Percentafe charges× Real estate income)

Let plug in the formula

Offer price=$10.94+($10.94×0.025)

Offer price=$10.94+0.2735

Offer price=$11.21

Therefore the offer price is: $11.21.

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ABC reports dividends per share of $1.40 and net income for the year of $140,000. The current stock price is $14.00. What is ABC's dividend yield

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The ABC's dividend yield when the ABC reports dividends per share of $1.40 and net income for the year of $140,000. The current stock price is $14.00 is 10%.

What is yield?

The yield on a security is defined as the measurement of the ex-ante instrument to a safety holder in financing.

It is a cardinal part of the return on an investment, with some other being the change in the security's market price.

The formula of calculating the yield is:

[tex]\text{Dividend Yield} =\dfrac{ \text{Dividend Per Share}}{\text{Current Stock Price}} \times 100[/tex]

According to the given information,

Dividend Per Share= $1.40,

Net Income= $1,40,000

Current Price= $14

Now, apply the formula in the given formula,

[tex]\text{Dividend Yield} =\dfrac{ \text{Dividend Per Share}}{\text{Current Stock Price}} \times 100\\\\\text{Dividend Yield} =\dfrac{1.40}{\$14}\times 100\\\\\text{Dividend Yield} =10\%[/tex]

Therefore,  ABC's dividend yield is 10%.

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When government policy moves from a budget deficit to a budget surplus and the trade deficit remains constant:

Answers

Answer:

investment will decrease if savings also remains constant

Explanation:

When government policy moves from a budget deficit to a budget surplus and the trade deficit remains constant: investment will decrease if savings also remains constant

If both the nominal interest rate and the expected inflation rate increase, what will happen to the real interest rate?.

Answers

Answer:

If the nominal interest rate and expected inflation rate both increase at the same rate, which means the inflation premium is compensated, the real interest rate will remain unchanged.

Explanation:

You are creating a budget with your family. What is one important thing to keep in mind as you come up with a plan for spending? OA Ignore your past spending habits because a budget focuses on future spending. OB. Remember to include unexpected income, such as gifts or types. OC. If your income varies every month, use the higher estimates for your budget. OD. Don't forget to include a way to save money for possible emergency situations.​

Answers

Answer:

A.ignore your past spending habits because a budget focuses on future spending

Ignore your past spending habits because a budget focuses on future spending is one important thing to keep in mind as you come up with a plan for spending. Hence, option A is correct.

What is the plan for spending?

A spending plan is a way to allocate your income to the assortment of needs and wants. You may efficiently manage your finances and choose where to spend your money by making a spending plan in advance.

Abundant Spending, Neutral Spending, Scarcity Spending, and Avoidance Spending are the Four Types of Spending. Spending on various things produces very diverse outcomes.

A spending plan outlines how much money will be spent and saved. Alternatively, a comparison of your revenue and where it is spent (savings and household expenses).

Simply put, a spending plan—also known as a budget—is a strategy you develop to help you meet expenses and spend money the way you want to.

Thus, option A is correct.

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Investment revenue is reported in connection with a statement of cash flows as: Multiple Choice An operating activity. An investing activity. A noncash activity. A financing activity.

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Investment revenue is recorded and reported in connection with a statement of cash flow in investing activity.

What is Investment Revenue?

Investment revenue is referred to the profits generated on capital invested. This is usually interest and dividends gained on a company's investment in other firms' stocks and bonds.

The cash flow from investing activity assists in reporting and recording cash changes resulting from the acquisition of property, plant, as well as, equipment.

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Money available to a household over and above what is required to have a comfortable standard of living is called ________. overtime pay real income average of earnings discretionary income

Answers

The money available to a household over and above what is required to have a comfortable standard of living is D. discretionary income.

What is money?

It should be noted that money simply means a medium of exchange. It's used for making purchases.

In this case, the money available to a household over and above what is required to have a comfortable standard of living is discretionary income.

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Anthem Company has 100,000 shares authorized, 96,000 shares issued, and 23,000 shares of treasury stock. Determine the number of shares outstanding.

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The number of outstanding shares is 73,000 shares.

What are the outstanding shares?

Shares outstanding refer to a company's stock that is currently held by all its shareholders.  They exclude treasury stock, but include:

Block shares held by institutional investors Restricted shares owned by the company's officers and insiders.

Outstanding shares appear on a company's balance sheet under “Capital Stock.”

Data and Calculations:

Authorized shares = 100,000

Issued shares = 96,000

Treasury stock = 23,000

Outstanding shares = 73,000 (96,000 - 23,000)

The number of outstanding shares is 73,000 shares.

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A fiduciary monetary system is a. dependent on barter for exchanges of goods and services. b. dependent on the public's faith to accept the currency. c. one which cannot have any inflation. d. fully backed by gold.

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Fiduciary money system is dependent on the public's faith to accept the currency.

What is fiduciary monetary system?

Fiduciary monetary system refers to money, coins or bank notes that is very available in the economy for usage .

Fiduciary money is normally accepted any where base on on what the bank issues or pass out.

Therefore, Fiduciary money system is dependent on the public's faith to accept the currency.

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According to jeremy siegel, since 1802, stocks outperformed bonds how often?.

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Jeremy Siegal showed that since 1802, stocks outperformed bonds in 69% of rolling 5-year investing periods.

How often do stocks outperform bonds?

Research by Jeremy Siegal showed that 69% of the time in 5-year investment periods, stocks would outperform bonds.

This was most probably due to stocks having higher returns overtime, and being more sensitive to economic performance which brought more or less returns to the stockholder.

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What is giving stadium shows increased competition?


a) TV
b) Arenas
c) Clubs
d) None of the above

Answers

Stadium shows increased competition is giving the Arenas.

What is stadium shows?

Stadium shows or Events include athletic events, concerts, and other related forms of stadium functions for which tickets will be made accessible to the general public.

These shows Excluded the Events and Team Games. Increased competition is providing the Arenas a boost.

Therefore, option b is correct.

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In a pro versus con analysis comparing functional and divisional structures, a key pro for the divisional structure is:

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In a pro versus con analysis comparing functional and divisional structures, a key pro for the divisional structure is ease of comparison

What is pro and con analysis?

Pros & Cons analysis is a method used in analyzing an option or decisions to determine the risk/reward of the decision. Pros and con can be used when analysing multiple options.

In a pro versus con analysis comparing functional and divisional structures, a key pro for the divisional structure is ease of comparison

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Within each of the three larger categories, best practices are categorized by ____ stages of process improvement.

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Within each of the three larger categories, best practices are categorized by four stages of process improvement.

What is Process Improvement?

Process Improvement serves as the proactive task of identifying as well as analyzing existing business processes within an organization.

The four stages of process improvement are;

Identify the need for change identify the need for change.Analyzing current processSeek commitment and support.Look for improvement strategy

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Germaine operates a florist shop in a busy section of town in which there are many competing florists, each selling somewhat unique floral arrangements, earning zero economic profits in the long run. Germaine is operating in a(n):

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Germaine is operating in a perfectly competitive market. As there are many competing florists, each selling somewhat unique floral arrangements, earning zero economic profits in the long run.

What is perfectly competitive market?

Perfectly competitive market is considered when all the competitors have same items and has no influence on pricing, and companies can enter and exit the market at any moment.

The market without restriction, customers have perfect or complete information, and companies are unable to set prices, according to economic theory.

Thus, the situation is of perfectly competitive market.

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An institutional review board (IRB) helps to ensure the safety of subjects of review. Who typically sits on such a board?
A. Academic scholars
B. Literaturer
C. All of above
D. None of these

Answers

Answer:

The answer to your question is A. Academic scholars

Explanation:

Institutional review boards are most often found at research universities. These boards have the ability to stop a research project if they have concerns about the safety of the subjects.

When multicultural organization development is required, alternative helping roles that emphasize _______ ________ must be part of the role repertoire of the social worker:

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When multicultural organization development is required, the helping tiles emphasize system interventions and advocacy skills.

What is a multicultural organization?

A multicultural organization simply means an organization that has employees from diverse backgrounds.

In this case, when multicultural organization development is required, the helping tiles emphasize system interventions and advocacy skills.

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Grant, Inc. had beginning and ending raw materials inventory of $80,000 and $100,000, respectively. If the cost of raw materials purchased was $407,500, what was the amount of direct materials used

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Based on the beginning and ending raw materials inventory and the cost of raw materials, the amount of direct materials used was $387,000.

What was the amount of direct materials used?

This can be found by the formula:
= Beginning raw materials + Purchases of new raw materials - Ending raw materials

Solving gives:

= 80,000 + 407,500 - 100,000

= $387,000

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In which stage of the product life cycle would a firm most likely use price reductions and reminder advertising to encourage customers to replace worn-out items

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In maturity stage of the product life cycle a firm would most likely use price reductions and reminder advertising.

What is product life cycle?

A product life cycle can be regarded as length of time from introduction of a product to consumers till the the consumer get the product.

This comes in stages, one of the this stage is

maturity stage of product life cycle where discount is used for consumers.

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The direct result of disaggregating the aggregate plan is the Multiple Choice marketing plan. production plan. material requirements plan. rough-cut capacity plan. master schedule.

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Master Schedule is the direct result of disaggregating the aggregate plan to identify the timeframe of individual items ahead of time.

What is disaggregating of aggregate planning?

Disaggregating an aggregate plan entails disintegrating or breakdown of an aggregate plan into individual product specifications in order to assess labor ( size, workforce, or skills), resources, and inventory needs.

The aggregate plan is disaggregated into a master schedule, which displays the amount and timing of individual end items over a projected timeframe of roughly 6 - 8  weeks ahead.

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Bayard organized, and owns and operates, Cypress Tours in the simplest form of business organization. This is

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Bayard organized, owns, and operates, Cypress Tours in the simplest form of business organization. This is called sole proprietorship.

What is a sole proprietorship in business?

A sole proprietorship is a type of business is can be managed and operated by an individual, or a business corporation. There exist no partners in the business corporation.

Therefore, we can conclude that Bayard who owns and operates Cypress TOurs in the simplest form of the business organization runs a sole proprietorship business and not a partnership, franchise, or corporation.

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Stockit, Inc. issued 100,000 shares of the 1,000,000 shares it is allowed to issue. Stockit has repurchased 10,000 of its own shares. The number of shares authorized equals ______ shares.

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Based on the number of shares that Stockit, Inc. were allowed to issue, the number of authorized shares is 1,000,000 shares.

What are authorized shares?

This refers to the maximum number of stock that a company is allowed to offer to the market/ investors.

In this case, Stockit Inc. were allowed to issue a maximum of 1,000,000 shares which means that this is the authorized share capital.

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what makes the federal reserve so unique compared to other central banks around the world is its g

Answers

The reason why the federal reserve of the United States is unique among other federal banks is due to:  public and private characteristics.

What is the federal reserve?

This is the central bank of the United States. This bank is the highest bank that the country is known to have.

The bank is known for its semi decentralization and the fact that it appoints people from the private sector.

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why do learners need to study intrepreneurship​

Answers

Explanation:

Entrepreneurship education offers key life skills such as problem-solving creativity, real-world problem-solving, collaboration, and teamwork, among others.

Entrepreneurial courses help students prepare for careers while also improving their practical life skills. Discover three reasons why students should be interested in entrepreneurship.

While most students recognize the value of education, they may confine their studies to the more traditional subjects of English, history, mathematics, science, foreign language, and the arts. Many students, on the other hand, recognize that entrepreneurship courses supplement their education by teaching communication, time management, negotiation, and cooperation skills.

PLEASE I NEED THIS NOW!!!
Would you ever be interested in a dual-enrollment program if your high school offered it? Why or why not?
(CAREER)

Answers

Answer:

yes

Explanation:

As a high schooler in dual enrollment you have the opportunity to take college level courses which will help when you are looking for a college.

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