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Tcecarenko [31]
4 years ago
11

What is the coupon rate for a bond with 3 years until maturity, a price of $1,053.46, and a yield to maturity of 6%? Interest is

paid annually.
Business
1 answer:
NikAS [45]4 years ago
3 0

Answer:

Coupon rate is 8%

Explanation:

We can ascertain the coupon rate by first of all determine the amount of coupon with pmt excel function below:

=pmt(rate,nper,-pv,fv)

rate is yield to maturity of 6%

nper is the number of coupons before maturity i.e 3 annual coupons in three years

pv is the current market price of $1,053.46

fv is the par value of $1,000

=pmt(6%,3,-1053.46,1000)=80

Coupon rate=pmt/face value=80/1000=8%

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Answer

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Step-by-step explanation:

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3 0
3 years ago
Valley Designs issued a 90-day, 6% note for $96,000, dated April 22, to Bork Furniture Company on account. Assume 360 days in a
Novay_Z [31]

Answer: Please see answer in explanation column

Explanation:

a) Due date = April 22+90 days =  July  21

b) Maturity value = 96,000+(96,000*6%*90/360) = $97,440

c1) Journal entry  for receipt of note by Bork Furniture

           journal       Debit                          Credit

Notes receivable       $96,000  

Account receivable                                        $96,000

C2) Journal entry  to record receipt of payment at maturity

 journal                     Debit                             Credit

Cash                        $97,440  

Notes receivable                                            $96,000

Interest revenue                                       $1,440 (97,440-96,000)

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3 years ago
The cas killed cows bodily ?A,who B,Whose C,Whom D,which ​
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Explanation:

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3 years ago
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7 0
3 years ago
A graphics reproduction firm has four units of equipment that are automatic but occasionally become inoperative because of the n
elena55 [62]

Answer:

(a) Average number of unit in line  = 0.256

(b) Average number of unit in operation= 3.209

(c) Average number of unit being service in operation = 0.535

Explanation:

Given Data:

Number of machine N = 4

Number of attendant (S) = 1

Service time (T)= 5 mins

Time required by the machine before servicing = 30 mins

Calculating the service factor (X) using the formula;

X = T/(T+U)

    = 5/(5+30)

    = 5/35

     = 0.1429

(a) Calculating the average number of unit in line (L) using the formula;

L = N* (1-F)

where, N = Number of unit

F = efficiency factor

L = average number of unit in line

Using the finite queuing table at X = 0.1429 and S = 1,

Efficiency factor = 0.936

Substituting, we have;

L = 4*(1-0.936)

   = 4* 0.064

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(c) Calculating the average number of unit being service in operation (H) using the formula;

H = N*F*X

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(b) Calculating the average number of unit in operation using the formula;

Average number of unit in operation= Number of unit-down unit

But down unit = L+H

The formula becomes;

Average number of unit in operation= Number of unit-(L+H)

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                                                             = 3.209

6 0
3 years ago
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