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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
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A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Bi
azamat

Answer:

Memphis $170,000

Biloxi $160,000

Birmingham $175,000

Explanation:

Preparation of an economic analysis of the three locations

Memphis economic analysis using this formula.

Economic analysis=(Building, equipment, administration costs+Increased transportation costs+(Expected volume *Labor and materials per units)

Let plug in the formula

Memphis Economic Analysis = $40,000 + $50,000 + (10,000 units *$8/unit )

Memphis Economic Analysis = $40,000 + $50,000 + $80,000

Memphis Economic Analysis = $170,000

Therefore Memphis Economic Analysis is $170,000

Preparation of Biloxi Economic Analysis

Biloxi Economic Analysis = $60,000 + $60,000 + (10,000 units *$4/unit )

Biloxi Economic Analysis = $60,000 + $60,000 + $40,000

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Birmingham Economic Analysis = $100,000 + $25,000 + (10,000 units *$5/unit )

Birmingham Economic Analysis = $100,000 + $25,000 + $50,000

Birmingham Economic Analysis = $175,000

Therefore Birmingham Economic Analysis is $175,000

Therefore the summary of the economic analysis of the three locations are:

Memphis $170,000

Biloxi $160,000

Birmingham $175,000

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3 years ago
A benefit that is sought by an interest group and that once achieved cannot be denied to nonmembers is called a:
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Answer:

Explanation:

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3 years ago
What is the source of most cut flowers sold in the United States
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