A single bank with $10,000 of reserves and a reserve ratio of 25 percent could support total transactions account balances of at most?

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Answer 1

A single bank with $10,000 of reserves and a reserve ratio of 25 percent could support total transactions account balances of at most of $40,000 .

The reserve ratio is the percentage of reservable liabilities that commercial banks are required to hold in reserve rather than lend out or invest. The nation's central bank, in this case the Federal Reserve in the United States, sets this norm. The cash reserve ratio is another name for it.

A reserve that banks keep with the RBI is called the CRR. It refers to the portion of bank deposits retained in cash. Commercial banks must maintain SLR, or needed reserves, on hand. It reflects a fraction of the commercial banks' net time and demand commitments that are maintained as authorized securities.

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Related Questions

What are the three categories of risk of harm in social and behavioral sciences?

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Risks of harm are often of a social, psychological, economic, and legal nature and are connected to social and behavioral studies.

What dangers exist in the study of social and behavioral sciences? Risks of harm are often of a social, psychological, economic, and legal nature and are connected to social and behavioral studies.Informational risk is the possibility of harm from the revelation of details about a specific person.Informational risk is often the sole or the main risk in social and behavioral research, hence managing it is of special interest to this field of study.A risk is a possible harm or injury connected with the study that a sane individual would probably consider significant when deciding whether or not to participate.A subject could feel uncomfortable, burdened, or inconvenient as a result of the research techniques.

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Compare revolving credit and closed-end credit.
a. car lease
b. credit cards
c. mortgage loan
d. home-equity line of credit
1. Revolving credit
2. Closed-end credit

Answers

Revolving credit - credit cards, home-equity line of credit
Closed-end credit - car lease, mortgage loan.

Debt instruments that are bought for a specific purpose and a predetermined period of time are considered closed- end credit. The person or entity must repay the entire amount of the loan, including any interest payments or  conservation costs, at the end of a pre-determined period.  A specified credit limit is given to the borrower when a lender grants revolving credit. This cap is determined by the customer's income, credit history, and credit score. When the account is opened, the borrower is free to use it anyway they see fit. Until it's closed by either the lender or the borrower, the account is open.

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What are the 3 major factors that determine a company's profitability?

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Answer:

Price, quantity, and variable are 3 major factors to determine a company's profitability.

a business evaluates a proposed venture as follows. it stands to make a profit of $10,000 with probability , to make a profit of $5000 with probability , to break even (zero profit) with probability , and to lose $5000 with probability . the expected profit in dollars is:

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Since the business evaluates a proposed venture, the expected profit in dollars is option (c) 3000.

What does business venture mean?

Business endeavor is seen as a business venture where there is a risk of failure or loss together with the hope of profit.

Note that Venture capital is a type of private equity investment that venture capital funds or organizations offer to startups, early-stage, and developing businesses that have either shown or have a high potential for growth.

In the question above:

There is profit of $10,000 and  $5000 as well as lose $5000.

Therefore, it is computed as:

(10,000x.15) + (5,000x.45) + 0 - (5,000x.15)

= 3000.

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See full question below

A business evaluates a proposed venture as follows. It stands to make a profit of $10,000 with probability 3/20, to make a profit of $5000 with probability 9/20, to break even with probability 5/20, and to lose $5000 with probability 3/20. The expected profit in dollars is

(a) 1500.

(b) 0.

(c) 3000.

(d) 3250.

(e) -1500.

g which of the following created the public company accounting oversight board to regulate public accounting firms? select one: a. the sarbanes-oxley act of 2002 b. the market reform act of 1990 c. the securities enforcement remedies and penny stock reform act of 1990 d. the securities acts amendments of 1990

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The Sarbanes-Oxley Act was a piece of legislation that was passed with the intention of safeguarding investors from corporate financial reporting fraud. It decided on reforms.

Explaining finances is what?

The term "finance" refers to issues including the development, management, and study of wealth and investments. It entails employing future income flows to finance current initiatives through the use of debt and credit, securities, and investment.

What is Financial Introduction?

A system of finance involves the transfer of money from lenders and investors to borrowers. It operates on a range of scales, including corporate, international, and national. As a result, it involves a lot of complexity in terms of markets, institutions, etc.

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What is the authors purpose in Silent Spring?

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The purpose of "Silent Spring," a book by rachel Carson, was to demonstrate how pesticides harm the environment. Carson demonstrates how pesticide chemicals can kill species that do not dwell close to them, such birds, especially eagles, by moving up the food chain.

She explains that by lingering in fat cells, where they degrade and impact other cells in the body, toxins can cause cancer in people. Carson provides natural alternatives as he wraps up the book.Both authors urge readers to prioritise conserving trees and defending human rights. With their pieces, they hope to both amuse and persuade readers of their point of view.

In "conserve the redwoods," by john muir, the author presents facts and data to persuade readers to rescue the sequoia, a type of tree, yet in "Silent Spring," by rachel carson, she invents a fictitious scenario about what life in the united states will be like if we don't save the environment. I'm fairly certain that there is a recurring element that best compares the author's objectives in "silent spring." "and "rescue the redwoods," the environment is a theme that runs through both tales. The moral of both of these tales is that we have a responsibility to protect the environment and to treat nature with care and caution.

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Which are indicators that economist used to measure how an economy grows?

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In addition to GDP, the Consumer Price Index (CPI), that also measures pricing power as well as inflation, and the Monthly Unemployment Report, which includes weekly non-farm payrolls, are two of the most important measures of economic growth.

An economic indicator is indeed a piece of economic data, typically on the macroeconomic scale, that analysts use to interpret future or current investment opportunities. These indicators can also be used to assess an economy's overall health.

Economic indicators may be anything the investor wants them to be, but specific data provided by the government and non-profit organisations has become widely followed. Economic indicators could be classified or grouped. Most of these economic indicators have such a set release schedule, allowing investors to plan for and anticipate seeing certain information at specific times of the month and year.

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The role of the product owner is most closely aligned with which agile manifesto.

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The Agile Manifesto premise that continual attention to technical quality and good design promotes agility is most closely associated with the position of the product owner.

A product owner is the person who informs his association in depth of a  customer  demand in order to  make a product that meets that demand.  He's  thus a  pivotal  element of agile, whose job it's to bring clarity to the process of product development. In order to  insure that products are  erected from  commencement to completion and match  client need, he's also in charge of developing user stories.  To ensuring that the  topmost goods are developed and made accessible to end  guests is the last responsibility of the product owner.

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Given that C = $1,000 + 0.60YD, if the level of disposable income is $1,000, the level of saving is
$600.
$400.
-$600.
-$300.

Answers

Answer:

$600

Explanation:

If the level of disposable income is $1,000, then the level of saving is given by the equation C = $1,000 + 0.60YD.

Substituting the value of disposable income, we get:

C = $1,000 + 0.60YD

= $1,000 + 0.60 * $1,000

= $1,000 + $600

= $1,600

Therefore, the level of saving is $1,600 - $1,000 = $600.

over winter break, the number of people available to work at restaurants falls. but the number of people eating at restaurants also falls. what will happen to the equilibrium price (wage) and quantity (labor hired) for restaurant workers? group of answer choices the effect on price is uncertain. quantity will rise. price will rise. the effect on quantity is uncertain. price will fall and quantity will fall. the effect on price is uncertain. quantity will fall. price will fall. the effect on quantity is uncertain.

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Fewer specialists will be utilized since the compensation increment will incite administrators to try to substitute different contributions for the now moderately more costly work.

Most eateries hold back nothing cost rates somewhere close to 25%-35% of deals, yet that objective might change by eatery industry portion: 25%: speedy help cafés with less particular work and quicker client exchanges. 25-30%: easygoing eating, contingent upon the menu and techniques for administration.

Work-concentrated enterprises incorporate eateries, inns, farming, and mining, as well as medical services and providing care. Less Created economies, overall, will quite often be more work serious.

These laborers take clients' requests, serve food and refreshments, make out clients' checks, and some of the time take installments. These essential obligations, be that as it may, may change significantly relying upon the particular sort of food administration foundation. There are more than 12.5 million food readiness and serving-related specialists.

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What does it mean when demand is inelastic?

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The good is not price sensitive if there is an inelastic demand for it. In this instance, the shift in price is greater than the shift in demand.

When demand changes more slowly than the price of the good changes, this is known as inelastic demand. The price of these commodities has no impact on consumer demand for them. This typically happens when essentials like food and life-saving medications are needed. Items made of elastic are usually required when there are no adequate alternatives. The three most often purchased goods with inelastic demand are utilities, prescription drugs, and tobacco products.

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powers company reported net sales of $1,200,000, average accounts receivable net of $78,500, and net income of $51,025. calculate the accounts receivable turnover ratio.

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The accounts receivable turnover ratio for this company is 15.32. The accounts receivable turnover ratio is typically used by investors and analysts to assess the creditworthiness and financial stability of a company.

This ratio measures how quickly the company is able to collect payments from its customers. A higher ratio indicates that the company is able to collect payments more quickly, while a lower ratio indicates that it takes longer for the company to collect payments. The accounts receivable turnover ratio is a financial metric that measures how quickly a company is able to collect payments from its customers. It is calculated by dividing the net sales of the company by the average accounts receivable over a specific period of time, usually a year.

To calculate the accounts receivable turnover ratio, you need to divide the net sales by the average accounts receivable. In this case, the calculation would be:

1,200,000 / 78,500 = 15.32

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as an alternative to gap financing, a developer may form a contract with a construction lender that ultimately makes the original construction lien inferior to the lien securing a subsequent loan. this contract is more commonly referred to as:

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This contract is more commonly referred to as subordination agreement.

What is the purpose of the subordination agreement?

A subordination agreement is a formal agreement that lowers one party's claim to that of another. It is typically utilized, with the consent of the party who would otherwise hold the first lien, to confer first lien status to a lienholder who would otherwise be secondary to another party.

A subordination agreement is a legal contract that specifies the debts' relative priority for repayment from the debtor. The subordination agreement has just one objective, despite its complicated nomenclature. It permits refinancing with a home equity loan or line of credit by transferring your new mortgage to the first lien position, executing your contract.

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Pamela called nine repair shops for quotes for auto repairs. The prices are $139, $150, $345, $99, $167, $155, $140, $200, and $160. She calculates to find there are no outliers in the data.

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The best proportion of focal propensity to utilize is the middle, and the worth that best addresses the proportion of focal inclination is 155.

The costs are given as:

$139, $150, $345, $99, $167, $155, $140, $200, and $160

The mean of a dataset can be impacted by an exception; in any case, the middle of a dataset can't be impacted by exceptions.

Thus, the best proportion of focal propensity to utilize is the middle.

To calculate the median, we start by arranging the dataset in ascending order

$99, $139, $140, $150, $155, $160, $167, $200, $345

Then, at that point, we select the center component as the middle.

Consequently, the middle cost is $155.

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This question is not complete , here I am attaching new questions:

Pamela called nine repair shops for quotes for auto repairs. The prices are $139, $150, $345, $99, $167, $155, $140, $200, and $160. She calculates to find there are no outliers in the data  may be biased. Which measure of central tendency should she choose and what value would best represent the central tendency?

What is the value of cell F9?

Answers

Calculates all active workbooks using F9 key. By default, Excel updates the worksheet immediately whenever you alter a value.

The F9 key in Microsoft Excel is a simple and fast way to check and debug formulas. By substituting it with the actual values that part of the formula acts on or with the calculated result, it enables you to solely assess the specified portion of the formula. Everyone knows that pressing the F9 key in Excel recalculates all worksheets in all open workbooks.. When I select this and press the function key F9, it evaluates to that. If that's not the issue, go back to the formula and pick out a new section. So, to undo something, hit the function key Ctrl + Z.

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Who is negatively affected by NAFTA?

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Due to NAFTA, Mexico lost almost 1.3 million farm jobs from 1994 to 2004. 5 The 2002 Farm Bill backed U.S. agribusiness with the aid of as plenty as 40% of net farm income.

6 When NAFTA removed alternate tariffs, corporations exported corn and other grains to Mexico below cost. Rural Mexican farmers ought to no longer compete.

How did NAFTA have an effect on Mexican workers?

The labor side settlement within NAFTA additionally affected the ability of people to arrange into unions, which in turn affected the satisfactory of work reachable for workers. This agreement, along with the rest of NAFTA, made it harder for the Mexican authorities to overlook following its own labor laws.

Did NAFTA damage Mexican farmers?

Amid a NAFTA-spurred influx of less expensive U.S. corn, the price paid to Mexican farmers for the corn that they grew fell by way of 66 percent, forcing many to abandon farming. From 1991 to 2007, about 2 million Mexicans engaged in farming and associated work lost their livelihoods.

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When was the US dollar worth the most?

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In terms of historical data, the US dollar peaked at 164.72 in February 1985. The facts, projections, and historical chart for the US dollar were last updated in December 2022.

How much is a dollar in America?

The nickname "buck" or "single" for the $1 bill. The rarely used $2 bill is commonly referred to as the "deuce," "Tom," or "Jefferson" (after Thomas Jefferson). Other names for the $5 bill include Lincoln, Fin, Fiver, and Five-Spot.

Will a dollar increase in value over time?

Inflation refers to the overall rise in prices, that means that as a result of this change inside the general price level, the value of currency declines over time. In the future, a dollar won't be able to purchase the same amount of products.

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How do oligopoly firms compete?

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Oligopolists may employ predatory pricing to drive competitors out of the market. This entails artificially keeping prices low, often below the full cost of production.

An oligopoly is a market in which a small number of firms recognise their interdependence in pricing and output policies. Because the number of firms is small, each firm has some market power. Automobile manufacturing is another example of an oligopoly, with the top three automakers in the United States being Ford (F), General Motors (GM), and Stellantis (the new iteration of Chrysler through mergers).

Oligopolies typically form in industries with a small number of influential players, none of whom can effectively push out the others. These industries are typically capital-intensive, with additional barriers to entry such as regulation and intellectual property protections.

If the conditions are favourable, oligopolistic firms will realise that they are best served individually not by competing tooth and nail, but by coordinating and cooperating with one another to a certain extent or in specific areas of business.

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P9-1 Recording and Reporting Current Liabilities LO9-1 IThe following information applies to the questions displayed below) Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31. Jan. 15 Purchased and paid for merchandise. The invoice amount was $15100: assume a perpetual inventory system. Apr 1 Borrowed $858.000 from Summit Bank for general use signed a 10-month, 14% annual interest-bearing note for the money. June 14 Received a $30,000 customer deposit for services to be performed in the future. July 15 Performed S3,950 of the services paid for on June 14. Dec. 12 Received electric bill for $26,060. Vigeland plans to pay the bill in early January. 31 Determined wages of $15,000 were earned but not yet paid on December 31 (disregard payroll taxes)

Answers

The concept mentioned is the Journal entries. A Journal is a book in which all the deals of a business are recorded for the first time.

The process of recording deals in the journal is called journalizing. Every sale affects two accounts, one is debited and the other bone is credited.

Journal entries are the abecedarian structure blocks that give the answers to those and other questions. Journal entries are made in chronological order and follow the double-entry account system, meaning each will have both a credit and a disbenefit column.

The journal entries for Vigeland Company are given as:

Date                Particulars                          Debit         Credit

January 15    Merchandising Inventory a/c     $15,100

                      To Cash a/c                                                 $15,100

                  (inventory purchased)

April 1          Cash a/c                                   $858.000

                   To 14% Note payable a/c                             $858.000

                  ( note payable issued)

June 14       Bank a/c                                   $30,000

                   To Unearned income a/c                             $30,000

                 (customer deposit received)

July 15         Unearned income a/c                 $3,950

                   To Service Revenue a/c                                 $3,950

                (paid for service rendered)

Dec 12      Electricity bill payable a/c            $26,060

               To Electricity bill expenses a/c                         $26,060

               (unsettled bill)

Dec 31      Wages payable  a/c                    $15,000

               To wages expenses a/c                                   $15,000

               (outstanding wages)

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Why is it important to protect ourselves from cybercrime?

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In order to transfer information via digital signals, cyber security is crucial.

Why cyber protection is important?

All types of data are protected from theft and harm by cybersecurity, which is why it is crucial. Information systems used by the government and business sectors as well as sensitive data, personally identifiable information (PII), protected health information (PHI), personal information, and intellectual property data are all included.

Through cyber security, businesses can rest easy knowing that their network and data are safe from illegal access. There are benefits for organizations, end users, and staff members. Cybersecurity improves mitigation, reaction, and not simply detection.

Cybercrime law defines norms of appropriate behavior for information and communication technology (ICT) users, establishes socio-legal sanctions for cybercrime, protects ICT users generally, and mitigates and/or prevents harm to people, data, systems, services, and infrastructure, in particular; protects human.

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What are the 5 core values at Accenture?

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These are the core values at Accenture: Client Value Creation, One Global Network, Respect for the Individual, the Best People, Integrity, and Stewardship.

Creating Value for Client

By being responsive, relevant, and continually delivering value, we enable our clients to become high-performance organizations and build partnerships that last.

Unified World Network

utilizing the strength of global insight, connections, teamwork, and learning to provide clients with great service wherever they conduct business.

Respect for the Person

valuing variety and individuality, encouraging a welcoming, inclusive atmosphere, and treating each person in a way that is consistent with Accenture's principles.

Best Person

The best talent for our company is attracted, developed, and kept on staff by challenging employees, exhibiting a "can-do" attitude, and building a cooperative and mutually supportive atmosphere.

Integrity

Saying what we mean, acting in accordance with our words, and accepting responsibility for our actions can help us to establish trust.

Stewardship

achieving our commitments to stakeholders, safeguarding the Accenture brand, building a better, stronger, and more resilient firm for future generations, nurturing our workforce, enhancing local communities, and conserving the environment worldwide.

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Why are the four factors of production important to economic growth?

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Economic growth is a result of all production forces. Without raw ingredients, no product can be produced (land). Without labour, such resources cannot be harvested, processed, or converted (labor). Without tools and equipment, those people cannot do their work (capital).

What is meant by economic growth?According to the description at Investopedia, economic growth is an increase in the production of economic commodities and services from one time period to another. Economic growth refers to the rise in the cost of an economy's goods and services, which increases revenue for companies. Stock prices increase as a result. By having more money, businesses can make investments and recruit additional workers. Income increases with the creation of more jobs. Economic growth is the gradual rise in the value of the products and services an economy produces over time. The increase in GDP, or gross domestic product, is calculated as a percentage.

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organization architecture is the totality of a firm's organizational arrangements, including its formal organizational structure, controls systems, incentive systems, organizational culture, organizational processes, and human capital. true false

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Organization architecture is the totality of a firm's organizational arrangements, including its formal organizational structure, controls systems, incentive systems, organizational culture, organizational processes, and human capital. This is true statement.

What do you mean by the organization architecture?

A theory of the firm, or several enterprises, known as organisational architecture "integrates the human activities and capital resource utilization within a system of task allocation and coordination to accomplish desired results and performance for both the short run and the strategic long term."

Organizational structures are crucial for firms because they support the implementation of effective decision-making procedures. Businesses can make better decisions more quickly by giving specialized jobs to lower-level staff.

An organizational structure is made up of the following five components: job design, departmentalization, delegation, span of control, and chain of command.

Therefore, Organization architecture is the totality of a firm's organizational arrangements, including its formal organizational structure, controls systems, incentive systems, organizational culture, organizational processes, and human capital. This is true statement.

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Which action is most likely to be part of the reviewing stage?

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Proofreading the message is most likely to be part of the reviewing stage

The writing process includes the critical step of proofreading. Meticulous proofreaders check the correct spelling, grammar, punctuation, names, numbers, and formatting. Proofreading is typically the final step in the review process for a written document. It involves carefully reviewing the document to ensure that it is free of any possible mistakes and reads smoothly.

Proofreading is an important step in the review process because it helps to ensure that the final version of the document is error-free and polished. It is typically done by a separate person from the writer or editor, as a fresh set of eyes can often catch errors that the writer or editor might have missed.

Complete Question

Which of the following actions is most likely to be part of the reviewing stage?

proofreading the message

analyzing the audience

creating a reader-centered tone

gathering relevant, accurate, and up-to-date information

developing the primary message

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What would happen if government increases spending and simultaneously increases taxes by the same amount to balance the budget?

Answers

The following is a brief summary of the balanced-budget multiplier: Production will rise at the same rate as spending and taxes are increased by the government.

What happens if both taxes and government spending go down the same amount?

The output will decrease by the multiple of the multiplier for government spending and rise by the multiple of the multiplier for taxes if both fall by the same amount. As a result, spending and taxes fall in proportion to output.

What happens when the government spends more money?

Keynesian economics holds that increased spending by the government raises aggregate demand and consumption, resulting in increased production and a quicker recovery from recessions.

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the tax multiplier question 6 options: is larger in absolute value as compared to the government spending multiplier. is a measure of how much taxes will fall when income is falling. is negative.

Answers

The government spending multiplier is a measure of the effect of an increase in government spending on aggregate demand and national income. It is calculated as the reciprocal of the marginal propensity to save (MPS).

Why Government spending multiplier is positive?

The government spending multiplier is positive because an increase in government spending raises aggregate demand and national income. The size of the government spending multiplier depends on the size of the MPS. If the MPS is small, the government spending multiplier will be large, and if the MPS is large, the government spending multiplier will be small.

Tax multiplier is greater than spending multiplier, what does it means?

So, in general, the tax multiplier is larger in absolute value than the government spending multiplier. This means that a given change in taxes will have a larger effect on national income than a given change in government spending. However, the precise size of the multipliers will depend on the values of the MPC and MPS, which can vary depending on the specific circumstances of an economy.

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A savings account is a risky investment.
true
false

Answers

True, A savings account is a risky investment because hile safe, savings are not risk-free: the risk is that the low interest rate you receive will not keep pace with inflation.

Savings accounts, assured money market accounts, and certificates of deposit( CDs) are all allowed to be very safe due to civil insurance. However, you can  effortlessly get it from your savings, If you need money for whatever reason. However, there's a cost associated with security and availability. Savings interest rates are  frequently lower than investment interest rates.  Savings are  parlous even if they're safe since there's a chance that the low interest rate you receive won't keep up with inflation.  For case, due to inflation, a delicacy bar that costs $ 1 now could cost$ 2 in ten years.  A bone today may only be enough to buy half of a delicacy bar in ten years if inflation continues at its current rate. However, you're effectively losing money, If your money does not increase as  rapidly as inflation.

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A safety and health program should be: A. Consistent with standard industry-wide programs B. Personalized and tailored to the specific job hazards at a workplace C. Written in a way so that it will never need to be changed D. Written so that it can be used by all facilities of an single organization

Answers

The correct answer is B. Personalized and tailored to the specific job hazards at a workplace.

A safety and health program should be tailored to the specific hazards and conditions at a workplace, rather than being based on a standard industry-wide program. It should be written in a way that is easy to understand and follow, and it should be updated as needed to reflect any changes in the workplace or new hazards that may arise. It should not be written in a way that is inflexible and cannot be modified to meet the changing needs of the workplace.

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1. Overhead application is recorded with a Select one: a. credit to Manufacturing Overhead b. credit to job cost sheets c. credit to Work in Process Inventory d. debit to Manufacturing Overhead

Answers

The concept mentioned here is Overhead, which is an ongoing expense of operating a business. The answer is option A,  credit to Manufacturing Overhead.

Overhead refers to the ongoing business charges not directly attributed to creating a product or service. It's important for budgeting purposes but also for determining how much a company must charge for its products or services to make a profit.

While direct costs relate to charges that are incurred when delivering a product or service, overhead costs are effects your business pays for, anyhow of whether you are delivering one unit or millions. Outflow costs are important in determining how much a company must charge for its products or services in order to induce a profit.

Manufacturing overhead is all circular costs incurred during the production process. This outflow is applied to the units produced within a reporting period.

The manufacturing above doesn't include any of a business's selling or executive functions. Therefore, the costs of similar particulars as commercial hires, inspection and legal freights, and bad debts aren't included in the manufacturing outflow.

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a $7,000 bond with semiannual coupons is redeemable for $7,700 in fifteen years. it has a nominal coupon rate of 5.5%. the bond is purchased to yield 8% per annum compounded semiannually. find the price of the bond, the amount for accumulation of discount in the tenth coupon, and the amount of interest in the tenth coupon payment. (round your answers to the nearest cent.)

Answers

The bond's current yield is 6.7%

What is meant by bond?A bond is a borrower's pledge to repay a lender with the loan's principle and, typically, interest. Municipalities, businesses, and governments all issue bonds. A bond is a type of debt security, much like an IOU. In order to raise money from investors who are ready to provide a loan to them for a specific period of time, borrowers issue bonds. Purchasing a bond entails lending money to the issuer, which could be a corporate, government, or local authority.Treasuries, which are the safest bonds but have low interest rates and are typically sold at auction, treasury bills, treasury notes, savings bonds, agency bonds, municipal bonds, and corporate bonds are some examples of bonds (which can be among the most risky, depending on the company).

The bond's current yield is 6.7% ($1,200 annual interest / $18,000 x 100).

The complete question is

say a bond has a face value of $20,000. You buy it at 90, meaning that you pay 90% of the face value, or $18,000. It is 5 years from maturity.

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