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Author Question: The ________ is the annual coupon payment divided by the current price of the bond, and is not ... (Read 97 times)

Chloeellawright

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  • Posts: 588
on: Jul 10, 2018
The ________ is the annual coupon payment divided by the current price of the bond, and is not always an accurate indicator.
 
  A) current yield
  B) yield to maturity
  C) bond discount rate
  D) coupon rate

Question 2

Jay's Lumber Supplies earns 2.5 percent on its investment in marketable securities. A draft disbursing system
  has been proposed that will increase disbursement float by 4 days. Purchases next year are expected to total 18
  million.
 
  Individual payments average 1,000. Use a 365-day year.
  a. If the draft system is adopted, what amount of funds can the firm expect to release during the year?
  b. If each issue draft costs the firm 0.30, should the draft system be adopted?
  c. Should the firm consider any other factors?


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mbcrismon

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: A

Answer to Question 2

a. 18,000,000
365 (4.


Chloeellawright

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

olderstudent

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Reply 3 on: Yesterday
Gracias!

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