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Sphinxa [80]
2 years ago
8

Gabriele Enterprises has bonds on the market making annual payments, with 10 years to maturity, a par value of $1,000, and selli

ng for $890. At this price, the bonds yield 7.7 percent. What must the coupon rate be on the bonds
Business
1 answer:
Vlad1618 [11]2 years ago
6 0

The coupon rate is 4.29%.

           

FV = 1000          

PMT  =  ?          

N  = 8          

I   = 5.10%          

PV =  -948          

           

Inputting the above details on the calculator you can find PMT

$42.92 PMT(5.1%,8,-948,1000)      

           

Alternatively, the PMT function in excel can also be used  

           

Coupon Rate = 42.92/1000  

= 4.29%    

                       

This gives you a coupon rate of 4.29%

Learn more about PMT here: brainly.com/question/24703884

#SPJ4

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Since the company is German, that would increase factor payments ot abroad by the difference = $70,000 - $50,000 = $20,000.

Total GDP increases by the amount of $50,000  + $20,000 = $70,000

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"bonuses"

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according to my research on the different type of payments that are given to employees, I can say that the answer is "bonuses", because it is the only type of physical payment that is missing from the question. Bonuses are paid to employees when reach a certain milestone or goal that is set by the employer or company, usually used as an employee motivator.

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