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Lubov Fominskaja [6]
3 years ago
14

McConnell Corporation has bonds on the market with 15.5 years to maturity, a YTM of 6.2 percent, a par value of $1,000, and a cu

rrent price of $1,039. The bonds make semiannual payments.
What must the coupon rate be on these bonds?
Business
1 answer:
VLD [36.1K]3 years ago
7 0

Answer:

Coupon rate is 6.4%

Explanation:

The coupon payment on a bond can be computed from a formula of current price of a bond

current price of a bond=coupon amount/yield to maturity

coupon amount=current price *yield to maturity

current price is $1039

yield to maturity is 6.2%

coupon rate =$1039*6.2%

                    =$64.42

Coupon rate=coupon amount/par value of bond

coupon amount $64.42

par value of bond=$1000

coupon rate =$64.42/$1000

                     =6.4%

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3 years ago
What would be the purchase price for a $5,000, 91-day T-bill paying 3% interest?
Nat2105 [25]
Well, you just need to find it using this formula :

5,000 x [100 % -  (3% x 91/365)]

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Hope this help
3 0
3 years ago
Read 2 more answers
Suppose a relatively poor country receives foreign aid to be used for education.​ However, a large portion of the money is stole
makkiz [27]

Answer:

True

Explanation:

There are two reason which suggest that action will generate greater inequality.

1. some amount is stolen by government official thus fund is getting allocated to person who are already self-sufficient hence causing inequality

2. even left portion of fund is not allocated proportionally to all the area and thereby increasing the inequality.

6 0
3 years ago
Suppose farmers in a given market can either grow soy beans or corn on their land. In addition, suppose an increase in the deman
Snowcat [4.5K]

Answer:

switch away from growing soy beans and growing corn

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7 0
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Elodia [21]

Answer: d.All of these choices are correct.

Explanation:

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Employee Carelessness can cause more material to be used if they fail to adequately measure the Requirements of a job. If they are also careless in the usage of the material, there will be wastage and therefore a larger use of materials.

Poor Quality Materials can also result in different quantities being used because for instance, more material could be required to do something that a stronger material could have easily done.

Inadequately trained Employees is a major reason for Material Wastage. If employees are not trained by seasoned people who know how to reduce wastage, that knowledge could take time to come to them. If they were adequately trained however, they can master the tricks on wastage avoidance and limit discrepancies in the amount of materials used per comparable jobs.

7 0
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