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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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Cullumber Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales
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Answer:

a) Net Income = 68200

b) Tingler net income= 8645

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   Total net income=38300

c) No, because net income would decrease from 68200 to 38300.

Explanation:

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3 0
3 years ago
The p/e ratio can be interpreted as ""the number of years’ earnings to pay back purchase price"" True or False
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Answer:

True

Explanation:

P/E ratio is the price to earning ratio. Investor look into this ratio before investing or buying share of the company as it shows the market value of the shares or demand of the shares in the market. If ratio is higher then investor anticipate the growth of the company´s earning in the future, it also show investors are willing to pay higher price for each dollar earning of the company.

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7 0
3 years ago
The assumption that in the absence of contrary information a business entity will continue indefinitely is the:
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Answer:

(D) Going concern assumption.

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3 years ago
You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 1.25 percent per year,
lana66690 [7]

Answer:

$793.70

Explanation:

The computation is shown below:

At introductory rate

The rate is 17.8% per year

And, in monthly, the rate would be

= 1.25% ÷ 12 months

= 1.4833%

Time is 6 months

Amount after 6 month would be

= Balance × (1 + interest rate)^ time period

= $8,000 × (1 +  0.1042%)^6

= $8,050.15

The interest after 6 month is

= $8,050.15 - $8,000

= $50.15

Now for increase rate to 17.8%

The rate is 17.8% per year

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= 17.8% ÷ 12 months

= 1.4833%

Time is 6 months

Amount after 6 month would be

= Balance × (1 + interest rate)^ time period

= $8,050.14 × (1 + 1.4833%)^6

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The interest after 6 month is

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5 0
3 years ago
One important point to remember is that just because a difference between two treatment groups is found to be statistically sign
pogonyaev

Answer:

Researchers use a finding's Effect size to measure magnitude and reliability.

Explanation:

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