Answer:
7.3%
Explanation:
Bond price is the sum of present value of coupon payment and face value of the bond. If the price is available the coupon payment can be calculated by following formula
As per given data
n= 18 years
Par value = $1,000
Price = $965
YTM = 7.7%
As we have the value of the bond we need to calculate the coupon payment using following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
$965 = C x [ ( 1 - ( 1 + 7.7% )^-18 ) / 7.7% ] + [ $1,000 / ( 1 + 7.7% )^18 ]
$965 = C x 9.57 + $263.10
$965 - 263.10 = C x 9.57
701.9 = C x 9.57
C = 701.9 / 9.57 = 73.34
Coupon rate = 73.34 / 1000 = 7.334%
Answer:
d. sinking fund.
Explanation:
A bond refers to a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
A sinking fund is a provision of a bond indenture which is designed to ease the burden of principal repayment by spreading it out over several years.
<em>Hence, a sinking fund is generally viewed or assumed to protect the bondholders such as creditors or investors because the fund set aside would serve as a collateral incase the bond issuer can't pay in the future. </em>
Answer:
Marginal utility is the change in total utility obtained by consuming one more unit of a good.
Explanation:
Marginal utility quantifies the added satisfaction that a consumer garners from consuming additional units of goods or services. The concept of marginal utility is used by economists to determine how much of an item consumers are willing to purchase.
Answer:
Recruitment criteria.
Explanation:
Recruitment criteria are models used to gauge all up-and-comers and their capacity to play out a vocation. You search principally for the most ideal match between an applicant's information, aptitudes, and capacities and the prerequisites for fruitful presentation of work.