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
weqwewe [10]
3 years ago
14

Nine years ago the Templeton Company issued 26-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds ha

d a 9% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places.
Business
1 answer:
sergij07 [2.7K]3 years ago
6 0

Answer:

11.62%

Explanation:

Note: see the attached excel file for how the realized rate of return is estimated.

Face value = $1,000  

Years completed = 9

Coupon rate = 11%

Coupon amount ($) = 110  

Call premium = 9%

Call price = 1,090

Realized rate of return = 11.62%

Download xlsx
You might be interested in
A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a
zvonat [6]

Answer:

$8,800

Explanation:

Stock dividend is a type of dividend which is paid in the form of additional shares in the company. It is declared as a ratio or percentage of outstanding shareholding in the company.

Stock Dividend = Numbers of outstanding shares x Stock Dividend percentage

Stock Dividend = 40,000 x 2% = 800 shares

Amount ot be transferred  = 800 x $11 = $8,800

5 0
2 years ago
Complete the statement with the correct word.
icang [17]

Answer:

parenting time or visitation

Explanation:

6 0
3 years ago
DeConinck Soup Co. found that its canned nacho cheese sauce was too spicy for Americans in the East and not spicy enough for tho
Alla [95]

Answer:

D: Geographic segmentation

Explanation:

Geographic segmentation is defined as the marketing strategy that primarily aims to target the distinct choice preferences of the customers across a specific region or area. DeConinck Co. is employing this strategy to understand the consumer needs and cater to the different types of demands of their customers residing across the region by producing and marketing products accordingly.

6 0
2 years ago
Read 2 more answers
Patti volunteered to cover the balance of a​ coworker's shift so that he could pick up his sick child from day care. this is an
Alex73 [517]
Patti volunteered to cover the balance of a​ coworker's shift so that he could pick up his sick child from day care. this is an example of​ organizational citizenship (OCB). OCB stands for <span>person's voluntary commitment within an </span>organization <span>outside her contractual tasks. The father of OCB is Dennis Organ. He defined the term in 1988.</span>
7 0
3 years ago
What percentage does a bank expect you to put down on a house
myrzilka [38]
Hhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh
5 0
3 years ago
Read 2 more answers
Other questions:
  • Gordon Corporation produces 1,000 units of a part per year which are used in the assembly of one of its products. The unit cost
    9·1 answer
  • The Cutting Department of Sheffield Company has the following production and cost data for July.
    10·1 answer
  • George recently purchased a computer from HardDigits Inc., a firm that sells assembled desktop computers and other electronic pr
    8·1 answer
  • Your friend says your car is worth about 50 dollars. Your friend is using money as a
    9·2 answers
  • According to dan bricklin, inventor of visicalc, what is the most effective and efficient way to move forward with an idea?
    15·1 answer
  • An independent study shows that when the city of Cleveland subsidized major sport teams owners with a billion dollars for three
    10·1 answer
  • The additional benefit of producing one more roast beef sandwich at a local deli is $2. The additional cost of producing one mor
    15·1 answer
  • What assumptions are necessary for a market to be perfectly​ competitive? In light of what you have learned in this​ chapter, wh
    7·2 answers
  • On December 15, 19x5, FLM Corporation exchanged 2,000 shares of $10 par value common stock for land. The current market price of
    12·1 answer
  • According to the Taylor rule, if inflation has risen by 6 percentage points above its target of 2 percent, the Fed should:_____.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!