PBJ Corporation issued bonds on January 1, 2006. The bonds had a coupon rate of 5.5%, with
interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January
1, 2021.
What is the yield to maturity for a PBJ Corporation bond on January 1, 2012 if the market
price of the bond on that date is $950?
A) 6.23% B) 5.50% C) 8.43% D) 10.50%
A
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Answer the following statements true (T) or false (F)
1. Investment income may come from interest earned from debt investments, dividends earned from stock investments, and/or increases in the market value of the security. 2. Short-term investments are investments in debt and equity securities that the investor intends to hold for longer than one year. 3. Trading debt investments are categorized as concurrent assets. 4. Depending on the maturity date, held-to-maturity debt investments are categorized as current assets or long-term assets on the balance sheet.
A pricing method based on product cost is
a. cost of goods sold pricing. b. net income pricing. c. gross margin pricing. d. inventory pricing.
Bonds with a face amount $1,000,000, are sold at 106. The entry to record the issuance is
A) Cash 1,000,000Premium on Bonds Payable 60,000Bonds Payable 1,060,000 B) Cash 1,060,000Premium on Bonds Payable 60,000Bonds Payable 1,000,000 C) Cash 1,060,000Discount on Bonds Payable 60,000Bonds Payable 1,000,000 D) Cash 1,060,000Bonds Payable 1,060,000
The ________ unionism philosophy believes that the key to achieving equity and voice is to win wage, benefit, and other gains through collective bargaining in the workplace.
Fill in the blank(s) with the appropriate word(s).