Apuppy pet services $1,000 bond has a 7.5 percent coupon rate, matures in 2016, and is currently quoted at $820. the current yield is: a. 6.15 percent. b. 7.50 percent. c. 9.15 percent. d. 10.27 percent. e. 11.43 percent.

Option (C) is correct.  

Explanation:

Face Value = $1,000

Current Price = $820

Annual Coupon Rate = 7.50%

Annual Coupon = Annual Coupon Rate × Face Value

                           = 7.50% × $1,000

                           = $75

Current Yield = Annual Coupon ÷ Current Price

                      = $75 / $820

                      = 0.0915 or 9.15%

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.