Jayy1054 Jayy1054

22-07-2017
Business

contestada

John buys a $1,000 bond that pays 6% annual interest at 75. what is john's annual yield?

Respuesta :

meerkat18 meerkat18

04-08-2017

To calculate the current yield of bonds.

We have the given par value of $1000, a market price of $750 and an interest rate of 6%.

Formula of current yield:

Yield = (interest rate * par value)/(market price) * 100%

= ((0.06 * $1000)/$750) * 100%

= ( $60/$750) * 100%

=0.08 * 100%

= 8%

Answer Link

Otras preguntas

Solid carbon (C) can burn in oxygen (O2). Select the answer that completes this chemical equation correctly. C + O2 →? O coz O C + 20

A gene exists in two alleles designated D and d. If 48 copies of this gene are the D allele and 152 are the d allele, what is the allele frequency of D? a. 0.24

Which linear function represents the line given by the point-slope equation y – 8 =1/2 (x – 4)? f(x) =1/2 x + 4 f(x) =1/2 x + 6 f(x) =1/2 x – 10 f(x) =1/2 x –

A class used cars and vans to go on a field trip because of the buses were already in use the use 12 vehicles to go on the trip each car holds for students in e

In examining photographs of people in magazines and newspapers, Archer and his colleagues (1983) found that, relative to the average female photo, the average m

What are the major parts of a skeletal muscle fiber?

The energy at the screen is roughly equal to the product of the number of maxima, the peak intensity of a maximum, and the width of a maximum. As N increases, t

A company that makes thing-a-ma-bobs has a start up cost of $18263. It costs the company $1.14 to make each thing-a-ma-bob and the company charges $4.06 for eac

Which of the following is true of gross domestic product?A. It only measures output.B. It only measures income.C. It is an exact measure of output.D. It can gi

Amanda blames herself for her recent job loss. Her therapist suggests that her depression results from this blaming of herself rather than the slumping economy.