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
Gelneren [198K]
3 years ago
10

​ Cold Boxes Corporation has 100 bonds outstanding with a maturity value of $1,000. The required rate of return on these bonds i

s currently 10 percent, and interest is paid semiannually. The bonds mature in 5 years, and their current market value is $768 per bond. The annual coupon interest rate is: (Round the answer to the nearest whole number.)
Business
1 answer:
Serga [27]3 years ago
7 0

Answer:

The annual coupon interest rate is 4%.

Explanation:

Bond Price = C *[1 - [1/(1 + i)^n]]/i + M/(1 + i)n

Bond Price = $768

n = number of periods

   = 5*2

   = 10 periods

C = ?

i = interest rate

 = 0.05

M = Face value

   = $1,000

768 = C*[1 - {1/(1 + 0.05)^10/0.05 +$ 1,000/(1 + 0.05)^10

768 = C*[1 - (1/1.05)^10/0.05 + $1,000/(1.05)^10

768 - 613.91 = 7.72173C

C = 154.08675 /7.7213

   = 19.95494

Annual = 19.95*2

            = $40

Coupon rate = 40/$1,000

                     = 4%

Therefore, The annual coupon interest rate is 4%.

You might be interested in
_______ used to create an application that is helpful in designing business process models and also helpful in simulating, optim
mina [271]

Answer:

Business Process Management Tools

Explanation:

According to my research on different business processes, I can say that based on the information provided within the question the term being described are called Business Process Management Tools. Like mentioned in the question these are tools that assist an organization accomplish certain goals in their everyday functions, such as simulating, optimizing, and  monitoring.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
2 years ago
Sam​ Hinds, a local​ dentist, is going to remodel the dental reception area and add two new workstations. He has contacted​ A-De
Inga [223]

Answer:

Sam will pay $937.43 weekly or $71.64 quarterly.

The weekly plan has less total cash outflow each year because it involves lower interest charges as the payment is made more frequently.

Sam will have to pay $117.18 if the loan calls for quarterly payments.

Explanation:

The cash outflows are calculated using the PMT formula or function as follows.

Quarterly Payment:

PMT(rate = 0.08/4, nper = 8x4, pv = 22000, fv = 0, 0) = $937.43

Weekly Payment:

PMT(rate = 0.08/52, nper = 8x52, pv = 22000, fv = 0, 0) = $71.64

Annual cash outflow using quarterly payment = $937.43 x 4 = $3749.72

Annual cash outflow using weekly payment = $71.64 x 52 = $3725.28

The weekly plan has $3749.72 - $3725.38 = $24.44 less total cash outflow each year because it involves lower interest charges as the payment is made more frequently.

Sam will have to pay $3749.72 / 32 = $117.18 if the loan calls for quarterly payments.

7 0
3 years ago
Bacon has budgeted sales for the first quarter of the next year to be 30,000 units. The inventory in hand at the beginning of qu
andriy [413]

Answer:

The budgeted production is 35000 units and option B is the correct answer.

Explanation:

The budgeted production for the quarter should be enough to meet the demand for sales for the quarter along with providing enough inventory to meet the desired level of ending inventory.

However, some of the sales for the quarter can be fulfilled using the opening inventory. Thus, we need to determine the net amount of sales that will remain uncovered after selling off the opening inventory.

Remaining sales for the quarter = Sales - Opening Inventory

Remaining sales for the quarter = 30000 - 5000 = 25000 units

The budgeted production is = 25000 + 10000 = 35000 units

5 0
3 years ago
Read 2 more answers
A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold
MissTica

Answer:

Option E: $40,000 - Cash from sale of Machine

Explanation:

Cash flow from Investing activities section of the cash flow statement should include cash received on the sale of property, plant & equipment, cash paid to acquire property, plant & equipment, cash paid for investments in or as loans to other companies and dividends received from any investments.

In case of sale of a Machine, $40,000 received on sale should be reported as source of cash in the cash flows from investing activities section.

3 0
3 years ago
Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to
Helga [31]

Answer:

Between quarter 7 and 8

Explanation:

To calculate the recession lets consider the quarter 7 and 8.

GDP in quarter 7 =$4499 Billion

GDP in quarter 8 =$4409 Billion

Growth rate of GDP in these two quarters= 4409-4499/4499*100

= -2 percent

Recession happens when the GDP decreases

8 0
2 years ago
Other questions:
  • Among the activities in the value chain, assembly requires_________ labor and R&D requires __________ labor.
    14·1 answer
  • Cleveland Cove Enterprises is evaluating the purchase of an elaborate hydraulic lift system for all of its locations to use for
    9·2 answers
  • A transaction may be an exchange of assets or services by one business for assets, services, or promises to pay from a different
    9·1 answer
  • A financial advisor informs a client that the expected return on a portfolio is 8% with a standard deviation of 12%. There is a
    13·1 answer
  • Pls help meeeeeeeeeeeeeeeeeee
    11·2 answers
  • 12<br>-<br>50what is the answer please​
    13·1 answer
  • Maren received 10 NQOs (each option gives her the right to purchase 8 shares of stock for $8 per share) at the time she started
    7·1 answer
  • In 2021, Carson is claimed as a dependent on his parents' tax return. His parents report taxable income of $200,000 (married fil
    8·1 answer
  • Which of these are considered both short- and long-term investments? select four options. cds stocks savings accounts mutual fun
    15·1 answer
  • Samantha believes in interference theory. What does she MOST likely believe? A. Past information can get in the way of learning
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!