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velikii [3]
3 years ago
12

A $1,000 face value bond is currently quoted at 101.2. the bond pays semiannual payments of $28.50 each and matures in six years

. what is the coupon rate?
Business
1 answer:
goblinko [34]3 years ago
7 0
Coupon rate is the yearly interest earned by a loan and it can be calculated with

C = \frac{i}{p}

where i is the annual interest and p is the par value of the bond or the initial loan amount.

For this particular case, since the semiannual payment is $28.50, then the annual payment is 2 x 28.50 = $57.00.

Thus, we have 

C = \frac{57}{1000} = 0.057

From this, the coupon rate is 0.057 x 100% = 5.7%.
Answer: 5.7%

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Which of the following is excluded from calculations of GDP?
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Answer: All of the above.

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A partner that invests money in a business, but does not take an active role in management or assume unlimited liability is best
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3 years ago
When McDonald's offers healthy menu items in hopes of avoiding competition with Wendy's and Burger King, it uses ________ positi
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6 0
2 years ago
A borrower made a mortgage loan 7 years ago for $160,000 at 10.25% interest for 30 years. The loan balance is now $151,806.62 an
Alja [10]

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9.39%

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7 0
3 years ago
Artisanâ Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 6 comma 500 units during the year. The company
aliina [53]

Answer:

206,000

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Sales                                             = 590000  

- CGS                                           = 302000  

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5 0
3 years ago
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