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Oksi-84 [34.3K]
3 years ago
6

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

Business
1 answer:
Ulleksa [173]3 years ago
7 0

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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Vladimir is a manager at an automotive plant in the United States. His company has realized it needs to think globally since the
lbvjy [14]

Vladimir is a manager at an automotive plant in United States.His company has realized it needs to think globally since the whole world is a source of business and has struck a deal with an automotive supplier in Brazil to buy 15% of their parts at a discounted rate as this will better serve the company's needs.His company has also determined that they can streamline their processes if they outsource some work .It means Vladimir's company is demonstrating Globalization.

Answer: Correct answer id (d)

<u>Explanation:</u>

Globalization means going global.It means expanding business and ideas beyond the domestic boundaries.Globalization has turned the whole world into a small village.All countries have come closer to each other.

If Vladimir's company buy automotive parts from Brazil at discounted rates then they will get cost advantage and produce automotive at cheaper rates.Further by outsourcing some work they will be able to reduce their burden and get best services from the country to which they are outsourcing.

So globalization has many benefits in terms of increase in international trade,low cost of living,high standard of living.high quality goods and services.more wealth in the world.

6 0
4 years ago
The following are budgeted data: January February March Sales in units 16,000 22,000 19,000 Production in units 19,000 20,000 18
m_a_m_a [10]

Answer:

Purchases= 19,625 pounds

Explanation:

Giving the following information:

Production in units:

February= 20,000

March= 18,500

The inventory of materials at the end of each month should equal 25% of the following month's production needs.

<u>To calculate the purchases of raw materials, we need to use the following formula:</u>

Purchases= production + desired ending inventory - beginning inventory

Purchases= 20,000 + (18,500*0.25) - (20,000*0.25)

Purchases= 19,625 pounds

7 0
3 years ago
You happen to be checking the newspaper and notice an arbitrage opportunity. The current stock price of Intrawest is $20 per sha
Vinil7 [7]

Answer:

Using the Put-Call parity principle where the following relationship holds:

Covered Call = Protective Put

Using the above, find the call price:

Call + Strike price / (1 + risk free rate) = Stock price + Put

Call + 18 / (1.08) = 20 + 3.33

Call + 16.67 = 20 + 3.33

Call = 23.33 - 16.67

Call = $6.66

<em></em>

<em>The call option is overvalued at $7 so sell the Call option and buy the Put option and the Stock and borrow $16.67 which is the present value of the Put. </em>

<em>The net gain will be:</em>

<em>= 7 - 6.66</em>

<em>= $0.34</em>

6 0
3 years ago
The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and
mafiozo [28]

Answer:

the  total budgeted fixed selling and administrative expenses for February is $172,800

Explanation:

The computation of the total budgeted fixed selling and administrative expenses for February is shown below:

= Advertising + Executive salaries + Depreciation on office equipment  + Other

= $50,700 + $60,700 + $20,700 + $40,700

= $172,800

hence, the  total budgeted fixed selling and administrative expenses for February is $172,800

4 0
3 years ago
A balanced federal budget and a balance of trade are secondary goals of macroeconomics, while growth in the standard of living (
Crank

There are many balanced federal systems that would work, for example, the study of planets (micro) in the solar system (macro), or solar systems (micro) in the galaxy (macro).

A balanced budget is a budget monetary plan wherein sales are the same as expenses, such that there's no budget deficit or surplus. Balanced price range. Balanced finance occurs when total sales same general outlays for a financial twelve months.

A few economists argue that moving from a budget deficit to a balanced price range decreases hobby prices, will increase investment, shrinks alternate deficits, and facilitates the economy to develop faster in the long term. shortage manner human wishes for goods and offerings exceed the available supply. supply is confined because resources are limited. demand, but, is absolutely unlimited.

Learn more about the Federal budget here:-brainly.com/question/3423211

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4 0
2 years ago
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