Answer:
Coupon rate = 5.8%
Explanation:
The price of a bond is the present value (PV) of the future cash flows discounted at its yield.
So we will need to work back to ascertain the coupon rate
Step 1
<em>Calculate the PV of redemption value and PV of interest payments</em>
<em>PV of Redemption </em>
= 1.067^(-5) × 1000
=723.06
<em>PV of the annual interest rate</em>
= price of the bond - PV of redemption
= $964- 723.06
= 240.934
Step 2
<em>Calculate the interest payment</em>
Interest payment = PV of redemption value / annuity factor
Annuity factor =( 1 -(1+r)^(-n) )/r
<em>Annuity factor at 6.7% for 5 years</em>
Factor =( 1-1.067^(-5) )/0.067
= 4.1333
Interest payment = <em>PV of the annual interest rate</em> / Annuity factor
Interest payment=
=240.93/4.1333
=58.290
Step 3
<em>Calculate the coupon rate</em>
Coupon rate = interest payment/ par value
Coupon rate = (58.290/1000) × 100
= 5.8%
Coupon rate = 5.8%
The company which has high power distance is:
At Sabine Industries, the CEO is seen as the undisputed leader of the office. People are afraid to correct him when he is wrong, and he is always addressed as Mr. CEO, while the people who report to him are addressed by their first names.
The company which has high femininity is:
a) Quality of life is important at Social Science Systems. All employees are eligible for child care, elder care, or pet care services, and employees can take as many vacation days as they need, as long as they get their work done. Employees regularly cooperate with each other to cover difficult or undesirable work shifts.
<h3>What is High Power Distance?</h3>
This refers to the increase in variance in power in a particular culture.
Some examples of countries with high power distance includes:
- China
- Belgium
- France
- Malaysia, etc
Read more about high power distance here:
brainly.com/question/21231585
Answer:
2 cents
Explanation:
The spot price = $0.7000 = 70 cents, The forward rate = $0.6950 = 69.5 cents and the call option with striking price = $0.6800 = 68.00 cents
The annualized six month rate = 3 1/2 % = 3.5 %, therefore the rate = r/n, where n is the number of period per year = 2. Therefore r/n = 3.5% / 2 = 0.035 / 2 = 0.0175
The minimum price = Maximum (spot price - striking price, (forward rate - striking price) / (1 + 0.0175), 0) = Maximum(70 - 68, (69.5 - 68)/ 0.0175, 0)
Minimum price = Maximum (2 , 1.47, 0) = 2 cents
Answer:
The answer is Historical cost.
Explanation:
Under the historical cost concept, an asset must be represented in the financial statements at the price it was acquired. However, if a substantial change has happened to the price over time, there is a method called revaluation an that proper technique must be applied to calculate the new value.
Answer:
B. High intrest rate.
Explanation:
Unless, it's capital one, of course.