1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lorasvet [3.4K]
3 years ago
6

Big Canyon Enterprises has bonds on the market making annual payments, with 17 years to maturity, a par value of $1,000, and a p

rice of $969. At this price, the bonds yield 8.1 percent. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
liraira [26]3 years ago
7 0

Answer:

Coupon rate = 3.8%

Explanation:

we know that :

   r = YTM =  [C + ( F-P)/n]  / (F+P)/2

where r= bond yield rate = 8.1% = .081

          F= Face valye of bond = $1000

         P= Price of bond = $ 969

        n = number of periods to maturity= 17 years

       C= coupon payment = ?

   Solution:

             0.081 = C + [ (1000-969)/17 ]  /  (1000+969)/2

             0.081 = (C + 1.8235) / 492.25

          0.081  * 492.25 =  C + 1.8235

              39.872  = C + 1.8235

             39.872-1.8235 = C

            C  =  38.04 ( coupon payment).

    we know that:

        Coupon rate = annualized interest (coupon) / par value of bond

                        =  38.04 / 1000

                       =  3.8%

       

You might be interested in
What are some non-monetary costs of attempting to eliminate risks? loss of life loss of productivity loss of time.
NikAS [45]

Some non-monetary costs of attempting to eliminate risks a are  time costs, search costs, and psychological costs .

Non-Monetary cost is a cost which a buyer pays other than money, to acquire a thing.The non-monetary price of acquiring a product comprises the time spent looking for it and the risk taken that it will provide the desired benefits.    

 

Non-monetary costs are another type of sacrifice that customers feel when they purchase and use a service. When deciding whether to purchase a service or repurchase it, time costs, search costs, and psychological costs are frequently taken into consideration and may occasionally be more significant considerations than monetary price.

The psychological expenses associated with receiving these services are the most distressing non-monetary charges. Fear of rejection (bank loans), fear of not understanding (insurance), and worry of uncertainty (including fear of high cost) are all examples of fears.

To learn more about non-monetary costs here

brainly.com/question/1068495

#SPJ4

6 0
1 year ago
Companies monitor sustainability performance for several purposes, including organizational learning, improved decision-making,
Alex787 [66]

Among the factors or reasons listed above, companies also monitor performance for sake of Accountability.

<h3>What is Accountability?</h3>

Every corporation, and its entities and stakeholders must be accountable if they are to thrive.

This means that every person within the system must embrace responsibility for doing the right thing and accept the responsibility for not doing so as well.

A business can be accountable by:

  • communicating its expectations clearly and timely
  • fostering a learning environment,
  • empowering its employees etc.

See the link below for more about Accountability:

brainly.com/question/980342

5 0
2 years ago
Cxcccccccccxccccccccccvb
Assoli18 [71]

Answer:

Oki, hi

Explanation:

7 0
2 years ago
Explain how an understanding of consumers' learning processes might affect marketing strategy planning. give an example.
Leokris [45]
Understanding the consumer's learning helps design a marketing strategy by identifying the patterns that can be created by the consumers. A business should learn to gather the common interest that they would want on a product which it can provide. Uniqueness, quality, and usability should be targeted so they can easily attract them. It can also be reinforced through advertisements that would draw them on acquiring the products. 
7 0
3 years ago
GRZ Inc. purchased a customized delivery truck in January 2018 for $70,000. They plan to use this truck for 7 years, and the com
asambeis [7]

Answer:

The correct answer is A) $2.800

Explanation:

Using the straight-line method to depreciate, the calculation to find the depreciation tax shield is the following:

  1. Finding the depreciable cost: Depreciable cost = purchase price ($70,000) - salvage value ($14,000) = $56,000
  2. Finding the depreciation per year: Depreciation/year = \frac{Depreciable cost (56,000)}{Asset useful life (7 years)} = $8000
  3. Finally, the depreciation tax shield for 2018: Depreciation tax shield = Dep/year ($8,000) * tax rate (0,35) = $2,800
7 0
3 years ago
Other questions:
  • Which of the following statements about Gen Xers is TRUE? A) Gen Xers are often willing to change brands. B) Gen Xers are select
    11·1 answer
  • Which of the following is an entrepreneur?a lawyer in a high-profile law firm that specializes in business law an artist who run
    9·1 answer
  • Explain three ways you can get home safely if the friend you rode with has drugs or alcohol in his or her system and you prevent
    8·1 answer
  • Dana wants to purchase a new pair of shoes from the internet. What steps should she take to ensure her identity is protected whi
    7·1 answer
  • The beginning checkbook balance of Shelley Co. was $5,559.10. The bank statement showed a bank balance of $7,888.44. The bookkee
    13·1 answer
  • Acme Company has variable costs equal to 30% of sales. The company is considering a proposal that will increase sales by $12,000
    9·1 answer
  • A market supply schedule shows the relationship between <br><br><br> please!!!!!!
    9·1 answer
  • Portland Sardines produced $14 million worth of cans of sardines. In producing these cans of sardines, it purchased $2 million d
    5·1 answer
  • Organization Weighs Use of Open Source Software. You began operating a small general electric contracting company two years ago.
    12·1 answer
  • Someone who enjoys the benefits of a good or service without paying any of the costs is referred to by economists as a _________
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!