If Risky Inc. has an outstanding bond with an annual coupon payment of $120 and is currently
Fantastic news! We've Found the answer you've been seeking!
Question:
If Risky Inc. has an outstanding bond with an annual coupon payment of $120 and is currently priced at $842, what is this bond’s current yield?
A.) 14.25%
B.) 12%
C.) 7.125%
D.) 18.50%
Expert Answer:
Answer rating: 100% (QA)
C 7125 Bonds current yield is 7125 A bonds current yield is an ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
A $1,000 par bond with an annual coupon has only one year until maturity. Its current yield is 6.713%, and its yield to maturity is 10%. What is the price of the bond?
-
A stock is currently priced at $35. A call option with an expiration of one year has an exercise price of $50. The risk-free rate is 7 percent per year, compounded continuously, and the standard...
-
A corporation has an outstanding bond with the following characteristics: Coupon interest rate ........... 6.0% Interest payments ............ semiannually Face value ................. $1,000.00...
-
What is the difference between an optimistic approach and a pessimistic approach to decision making under assumed uncertainty?
-
You are the credit manager for Carmichael Supply Company. One of your sales staff has made a $50,000 credit sale to Zizes Electronics, a manufacturer of small computers. Your responsibility is to...
-
Blocks A and B weigh 75 lb each, and D weighs 30 lb. Using the coefficients of static friction indicated, determine the frictional force between blocks A and B and between block A and the floorC. B....
-
In a simple throwball game on ice, a \(90-\mathrm{kg}\) athlete throws a \(1.0-\mathrm{kg}\) ball at \(15 \mathrm{~m} / \mathrm{s}\). The ball is caught by his \(80-\mathrm{kg}\) teammate. If \(20...
-
Warwick Bottle Company (WBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Standard Cost per 100 Cost Category...
-
When an object is placed at the focus of a concave mirror, the image formed is (i) at infinity (ii) real and inverted, and (iii) highly magnified (or highly enlarged) M E A D C B P F At infinity N
-
Hank has a 30% interest in KKC LLC, a calendar year entity. At the beginning of the year, Hank had an outside basis in KKC of $60,000 which included his $10,000 share of KKC liabilities. On July 1st,...
-
Write a generalized view of a phase review process for a new evolutionary (follow on) high-technology communications product such as a cell phone that has a short lifecycle and limited technology...
-
Time the results of heapsort and merge sort. Which algorithm behaves better in practice?
-
Write a method of the BinarySearchTree class: that returns the smallest element of a tree. You will also need to add a method to the Node class. Comparable smallest()
-
Add methods: void preorder (Visitor v) void inorder (Visitor v) void postorder (Visitor v) to the BinaryTree class of Section 17.2.3.
-
Show that a red-black tree with black height bh has at least 2 bh 1 nodes. Look at the root. A black child has black height bh 1. A red child must have two black children of black height bh 1.
-
Describe a recursive algorithm for finding the maximum number of siblings in a tree.
-
We have talked at times how economic theory does not explain everything. There are issues with how our markets work in health care, we have significant income inequality, monetary policy sometimes...
-
How will relating product contribution margin s to the amount of the constrained resource they consume help a company maximize its profits?
-
Determine whether each of the following statements is true or false: Management accountants should be technically proficient, but they dont need strong oral and written communication skills.
-
Determine whether each of the following statements is true or false: The Association of International Certified Professional Accountants (AICPA) issues the Certified Management Accountant (CMA)...
-
Determine whether each of the following statements is true or false: The Sarbanes-Oxley Act of 2002 (SOX) imposes stricter requirements for financial reporting and internal controls and stricter...
Study smarter with the SolutionInn App