Gabriele Enterprises has bonds on the market making annual payments, with nine years to maturity, a par value of $1,000, and sel
ling for $954. At this price, the bonds yield 6.2 percent. What must the coupon rate be on the bonds
1 answer:
Answer:
5.52%
Explanation:
For computing the coupon rate we first have to determine the PMT by applying the PMT formula
Given that,
Present value = $954
Future value = $1,000
Rate of interest = 6.2%
NPER = 9 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the monthly payment is $55.18
Now the coupon rate is
= $55.18 ÷ $1,000
= 5.52%
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Answer:
Mark-up = 50%
Explanation:
Given the following data;
Selling price = 15 Pesos
Purchasing cost = 10 Pesos
To find the mark-up;
First of all, we would determine the profit;
Profit = 15 - 10
Profit = 5 Pesos
Now, we can solve for the mark-up using the formula below;
Mark-up = 50%