Mette Badminton Equipment Co. wants to raise $7 million to expand operations. To accomplish this, it plans to issue 20-year bond
s with a face value of $1,000. The coupon rate is set at 9% and the couponds will be paid semi-annually. The bonds are priced at a yield-to-maturity of 10%. What is the minimum number of bonds the firm must sell to raise the $7 million
1 answer:
Answer:
7,657 bonds
Explanation:
In order to determine the minimum number of bonds first we have to find out the present value of the bond which is to be shown in the attached spreadsheet.
Data provided in the question
Future value or Face value = $1,000
PMT = $1,000 × 9% ÷ 2 = $45
Rate of interest = 10% ÷ 2 = 5%
NPER = 20 years × 2 = 40 years
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value of the bond is $914.20
Now the raise amount is $7 million
So, the number of minimum number of bonds is
= $7,000,000 ÷ $914.20
= 7,657 bonds
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Answer:
a) For this case we have quantitative data since we have frequencies per each category.
b) For this case is better use percentages since we have frequency counts per each
c) First we need to calculate the total for the frequencies:
respondents
For this case we can calculate the percentage like this:
d) For this case the percentage of people who agree with allowing drivers of motor vehicles to talk on a hand-held cell phone while driving is just 4.07% and by the other hand the rest of the people correspond to 95.93%.
The people who are NOT strongly agree is about 24 times greater than the peopl who strongly agrees.
So we can say that we don't have a general support for the claim.
Explanation:
For this case we have the following data given:
Number of respondents that they strongly agree with the statement = 44
Number of respondents that they somewhat agree with the statement = 130
Number of respondents that they somewhat disagree agree with the statement = 165
Number of respondents that they strongly disagree agree with the statement = 741
Part a
Do the responses for this statement provide categorical or quantitative data?
For this case we have quantitative data since we have frequencies per each category.
Part b
Would it make more sense to use averages or percentages as a summary of the responses for this statement?
For this case is better use percentages since we have frequency counts per each category so then not makes sense calculate averages for this case.
Part c
What percentage of respondents strongly agree with allowing drivers of motor vehicles to talk on a hand-held cell phone while driving?
First we need to calculate the total for the frequencies:
respondents
For this case we can calculate the percentage like this:
Part d
For this case the percentage of people who agree with allowing drivers of motor vehicles to talk on a hand-held cell phone while driving is just 4.07% and by the other hand the rest of the people correspond to 95.93%.
The people who are NOT strongly agree is about 24 times greater than the peopl who strongly agrees.
So we can say that we don't have a general support for the claim.