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
coldgirl [10]
4 years ago
8

Big Canyon Enterprises has bonds on the market making annual payments, with 12 years to maturity, a par value of $1,000, and a p

rice of $1,030. At this price, the bonds yield 6.14 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:
PSYCHO15rus [73]4 years ago
4 0

Answer:

6.32%

Explanation:

Bonds yield amount = $1,030 × 6.14% = $63.242

Coupon rate = Bond yield amount ÷ Par value of the bond = $63.242 ÷ $1,000 = 0.063242, or 6.32%

Therefore, the coupon rate on the bonds must be 6.32%.

You might be interested in
West Corp. issued 13-year bonds 2 years ago at a coupon rate of 9.4 percent. The bonds make semiannual payments. If these bonds
finlep [7]

Answer:

9.68%

Explanation:

yield to maturity (YTM) = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]

face value = $1,000

market value = $1,000 x 0.98 = $980

n = (13 - 2) x 2 = 22

coupon = $1,000 x 0.094 x 1/2 = $47

YTM = {$47 + [($1,000 - $980) / 22]} / [($1,000 + $980) / 2] = $47.9090 / $990 = 0.4839 x 2 (annual rate) = 0.09678 = 9.68%

4 0
4 years ago
Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one mor
joja [24]

Answer:

A.$12,000

B.$8000

C.MRPL/PL = 3

MRPK/PK =2

D) Since each of the above calculated ratios are more than one, therefore adding additional worker or tractor will increase the total revenue for each of the dollar spent.

Explanation:

(a) The Marginal Revenue Product of Labor (MRPL) can said to be the additional revenue generated when an additional worker is employed.

$66,000 - $54,000 = $12,000

Thus, MRPL is 12,000

b) Marginal revenue product of capital is

( 62000 - 54000)= $8000

c) MRPL/PL = 12000/ 4000= 3

MRPK/PK = 8000/4000=2

Therefore Since these two ratios are not equal it means the firm is not using the least cost combination of inputs.

d) Since each of the above calculated ratios are more than one, therefore adding additional worker or tractor will increase the total revenue for each of the dollar spent.

5 0
3 years ago
At Infosoft Solutions, employees are encouraged to take care of their problems by working with one another and with customers, u
likoan [24]

Answer: Decentralized

Explanation: In a decentralized organisation, the seniors in the organisation transfers the authority and responsibility to their subordinates.

This is done by the seniors with the objective of effective running of operations within. The employees in such organisations usually remain more motivated than others.

In the given case, Infososft is encouraging their employees to take their own decisions while dealing with customers. Hence the transfer of authority for decision making is evident.

From the above we can conclude that the correct option is A.

6 0
3 years ago
4. When Jenna confided in Lew and Al that she, too was concerned about adding additional risk, Lew suggested that they explore t
deff fn [24]

Answer:

limited liability company

Explanation:

A limited liability company (LLC) can be regarded as a business structure that is very common in the United States, these business structure can be regarded as a one in which the owners can not be regarded as been personally liable for debts as well as the liabilities of the company. Limited liability companies can be regarded as hybrid entities which is the combination of the features of corporation s well as partnership

6 0
3 years ago
In the united states ,dollar bills, , and dimes are representative money
AnnyKZ [126]

Answer:

In the United States, dollar bills, nickels, and dimes are Representative money It can be exchanged for a valuable good, was used in systems involved a "gold standard", and can be traded for a commodity such as silver.

3 0
3 years ago
Other questions:
  • Prior to recording adjusting entries, the Office Supplies account had a $379 debit balance. A physical count of the supplies sho
    10·1 answer
  • 3x + y = 2<br>4x + y=20​
    12·1 answer
  • !WILL GIVE BRAINLIEST AND 15 PTS PLEASE HELPPP!
    8·2 answers
  • Zeus wanted to convey Mount Olympus to Artemis, Ares, Aphrodite, and Athena in equal shares. On July 1, he saw Artemis, Aphrodit
    14·1 answer
  • Imagine that you earned $8,425 in one year. If the government enforces a 15% income tax, how much money would you owe in taxes a
    8·2 answers
  • Suppose Sean would like to invest $6,000 of his savings. One way of investing is to purchase stock or bonds from a private compa
    7·1 answer
  • Roger purchased a stock for $16 a share. The stock paid a $1 annual dividend and increased in price by $2 a year for the followi
    14·1 answer
  • Suppose you were hired as a consultant for a company that wants to penetrate the Comp-XM market. This company wants to pursue a
    9·1 answer
  • A machine can be purchased for $60,000 and used for five years, yielding the following net incomes. In projecting net incomes,
    15·1 answer
  • What are some possible explanations for why these loans are popular despite the fact that they create a cycle of debt for many b
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!