A General Electric 7½25 Bond Closed at 98

question 37

Multiple Choice

A General Electric 7½25 bond closed at 98.What is the current yield?

• A)7.65%
• B)7.81%
• C)7.50%
• D)7.34%

---

Definitions:

Receivables

Money owed to a company by its customers or clients for goods or services provided that have not yet been paid for.

Payables

Payables, also known as Accounts Payable, are liabilities of a company that represent money owed to creditors for goods and services received but not yet paid for.

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and interest, from its total revenues.