Calculate the Annual Interest and Current Yield for the Bond

question 143

Short Answer

Calculate the annual interest and current yield for the bond, rounding decimals to hundredths and percents to the nearest tenth. $$\begin{array} { l l l l l } & \text { Coupon } & \text { Annual } & \text { Market } & \text { Current } \\\text { Company } & \text { Rate } & \underline { \text { Interest } } & \underline { \text { Price } } & \text { Yield } \\\text { King Corp. } & 7.375 & & 86.125 &\end{array}$$

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.

Notes Payable

A written promise to pay a specified sum of money, usually with interest, by a certain date, classified as a liability on the balance sheet.

Gross Margin

The difference between revenue and cost of goods sold, expressed as a percentage of revenue, indicating the financial health of a company’s sales.

Impairment Loss

A reduction in the recoverable amount of a fixed asset or goodwill, exceeding its carrying amount on the balance sheet.