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sesenic [268]
2 years ago
5

A university issues a bond with a face value of $5000 and a coupon rate of 4. 41% that matures on july 15, 2018. The holder of s

uch a bond receives coupon payments of $110. 25. How frequently are coupon payments made in this case?.
Business
1 answer:
Margaret [11]2 years ago
7 0

The coupon payments would be made twice every year.

What is coupon payment?

Coupon payment means the cash amount that bondholders would receive from the university(bond issuer) on periodic basis till the bond matures, it is likely that the coupons are payable semiannually or annually as would be determined in this analysis.

The coupon payment is closely related with the coupon rate , which means that in order to determine the number of times in a year that coupons will be paid we can make use of the coupon received, the par value, the coupon rate, such that the frequency of coupon payments would be the unknown as shown below:

coupon receipt=par value*coupon rate/coupon frequency

coupon receipt=$110.25

par value=$5000

coupon rate=4.41%

coupon frequency=unknown(assume it is X)

$110.25=$5,000*4.41%/X

$110.25=$220.50/X

X=$220.50/$110.25

X=2

Coupons would be twice every year, which means semiannual coupon payments

Read more on coupon frequency on:brainly.com/question/16748047

#SPJ1

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Answer:

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Explanation:

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The following totals for the month of April were taken from the payroll register of Magnum Company. Salaries $12,000 Social Secu
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Answer:

d. credit to Salaries Payable for $8,600

Explanation:

<em>The journal entry would be as follows.</em>

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Federal Income taxes withheld                       2,500 Credit

Social Security & Medicare taxes withheld      900 Credit

Salaries Payable                                               $8,600 Credit

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Mettel Products sells 100,000 flash drives annually to industrial distributors who resell the drives to business customers for $
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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Mettel Products sells 100,000 flash drives annually to industrial distributors who resell the drives to business customers for $40 each. The distributors’ margins are 25%. Mettel Products’ cost of goods sold is $10.00 each. Mettel’s total variable costs (including selling costs) are $15.00 per drive.

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C) Break-even points= 75,000/14= 5,357 units

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3 years ago
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