answer.
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
pickupchik [31]
1 year ago
10

The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price o

f the bond then falls by $100, what will be the interest rate yield to a new buyer of the bond
Business
2 answers:
stiv31 [10]1 year ago
6 0

Answer:16.67%

Explanation:

Given the following;

Bond price = $1000

Coupon rate = $150 (amount of interest paid on the bond annually)

Calculating the yield rate of the bond to a new buyer.

The price of the bond has fallen by $100

Therefore,

New bond price = $1000 - $100 =$900

Therefore, the yield rate is given by;

(Coupon value/bond price) × 100

(150/900) × 100

1.667 × 100 =16.67%

Lelu [443]1 year ago
4 0

Answer:

16.7 percentage

Explanation:

bond price = $1000 - $100 = $900

fixed amount / bond price * 100 = IR

(150/900) * 100 = 16.7%

The reason for this equation is that interest rate is the amount a lender charges for the use of assets expressed as a percentage of the principal.

originally the price if the bond is $1000 which later falls by $100, so that leaves us to a $900 bond rate.

The interest rate is typically noted on a annual basis known as the annual percentage rate (APR).

You might be interested in
The Quarter Burger is a hamburger sold by the international fast-food chain Sammy's Burgers. It was given the name because it co
timama [110]

Sammy's quarter-pound burger is positioned by: price-quality

<u>Explanation:</u>

The price-quality way of positioning practices the similarity within price and quality before-mentioned that it optimally values a commodity according to the feature of the commodity to retain the commodity hovering in the customer's perception. Pricing does not necessitate to be huge for more leading positioning.

Marketers frequently do price/ quality properties to locate their trademarks. Although the price is an essential factor, the commodity quality must be tantamount to, or indeed more reliable than, fighting trademarks for the positioning strategy to be active.

8 0
2 years ago
Suppose Congress passes legislation that offers subsidies to orange farmers. The impact on the market for orange juice will be a
Dmitrij [34]

Answer:

<u>the supply curve</u>

Explanation:

Remember the supply curve shows the relationship between the amount of a commodity that a producer (or orange farmer) is <em>willing </em>to offer and at a particular price at any given time.

Because of the subsidies to orange farmers we expect the price of orange to become lesser in the future. Therefore the rightward shift occurs in supply curve for oranges due to favorable changes such as the new legislation which may lead to:

  1. Reduction in tax,
  2. Reduction in cost of factor of production,
  3. Expectation of fall in price in future,

3 0
2 years ago
The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $18,000,
Ugo [173]

Answer:

Multiple choices are:

18.5%

16.7%

34.6%

15.9%

The correct option is the last one,15.9%

Explanation:

The simple rate of return is the annual incremental net savings divided by the initial investment.

The annual incremental net savings is the annual savings recorded from the new process minus annual depreciation charge.

annual savings is $143,000

depreciation charge=cost of new equipment-salvage value of old equipment/useful life of the new equipment

depreciation charge=($414,000-$18,000)/6=$66,000

simple rate of return=$66,000/$414,000=15.9%

8 0
1 year ago
Your supervisor has come to you with the following list of expenditures for the year and is asking you whether they should be ca
Trava [24]

Answer:

Capitalized Expenditures:

2. Added a new wing onto the office building.

5. Had an engine rebuilt in one of their fleet cars.

Explanation:

Capitalization is the process of delaying the full recognition of an expense for the acquisition of a new asset with long-term life so that the costs can be treated as an expense gradually over its useful life through an accounting method known as depreciation or amortization.

The criteria for capitalizing expenditure depend on whether the expenditure is necessary to bring the asset to the condition and location where it can be operated as desired by the management.  It must also meet the threshold amount set by management for capitalization.  This is because some assets can be used for more than one year and still they are not regarded as capital assets.  Example is a stapling machine that costs less than a dollar.

6 0
2 years ago
Pleasantville maintains an appropriations ledger for police department supplies. The amount appropriated for supplies was $100,0
satela [25.4K]

Answer:

Appropriation available for spending = 37000

Explanation:

In the appropriations ledger, the amount available for spending at any moment is the total appropriation minus expenditures plus outstanding encumbrances.

100000 - 35000 - 28000 =  37000

3 0
2 years ago
Other questions:
  • Martina advises her tax client, Breslin Baked Goods, to disclose a matter by
    10·1 answer
  • Drew Cane Products, Inc., processes sugar cane in batches. The company buys a batch of sugar cane from farmers for $90 which is
    7·1 answer
  • A trend whereby consumers expect to be able to purchase items electronically, whenever and wherever they want is known as ______
    6·2 answers
  • The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencil
    6·1 answer
  • An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are giv
    8·1 answer
  • A firm employs 100 workers at a wage rate of $10 per hour, and 50 units of capital at a rate of $21 per hour. The marginal produ
    7·2 answers
  • This​ year, Druehl,​ Inc., will produce 57 comma 60057,600 hot water heaters at its plant in​ Delaware, in order to meet expecte
    7·1 answer
  • Jasper Company has sales on account and for cash. Specifically, 70% of its sales are on account and 30% are for cash. Credit sal
    9·1 answer
  • Selected information from the accounting records of Dunn's Auto Dealers is as follows: Cost of furniture purchased for cash $ 8,
    12·1 answer
  • World-Tour Co. has just now paid a dividend of $2.83 per share (Div0); its dividends are expected to grow at a constant rate of
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!