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gayaneshka [121]
3 years ago
11

O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%,

they pay interest semiannually, and they sell at a price of $975. What is the bond's nominal coupon interest rate? Group of answer choices 8.12% 7.32% 8.99% 7.71% 8.54%

Business
1 answer:
kozerog [31]3 years ago
4 0

Answer:

8.99%

Explanation:

For this question we use the PMT function that is presented on the excel spreadsheet. Kindly find it below:

Given that,  

Present value = $975

Future value = $1,000

Rate of interest = 9.25%  ÷ 2 = 4.625%

NPER = 25 years × 2 = 50 years

The formula is shown below:

= PMT(Rate,NPER,-PV,FV,type)

The present value come in negative

So, after solving this, the PMT is $44.96

Now the annual PMT is

= $44.96 × 2

= $89.92

So, the coupon interest rate is

= $89.92 ÷ $1,000

= 8.99%

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Wewaii [24]

<u>Answer:</u>

A. San Francisco-based Airbnb used #OneLessStranger to spark an international social media campaign in which it asked its community of customers to perform random acts of hospitality for strangers, then share a video or photo of themselves with the person they helped.

B. Dunkin' Donuts serves dry pork and seaweed donuts in China and grapefruit donuts in Korea.

C. Austria's Red Bull sponsors extreme sports events across Europe, North and South America, and Asia, making its drinks feel like a local presence while the company maintains a European look to its packaging.

<u>Explanation:</u>

Globalization is the distribution throughout national boundaries and traditions of goods, technology, knowledge and employment. This defines in terms of economics an inter-connectivity of countries across the globe that is promoted by free trade.

This seeks to support consumer economies worldwide by rendering markets more effective, increasing competition, reducing military conflicts, and more evenly distributing wealth. While the impoverished and the rich benefit from globalism in the median developing economy, it often has little impact on the incomes of the needy in many developed economies. Yet government actions are important in making globalization's advantages more comprehensive.

8 0
3 years ago
Walther owns a home in flood-prone Paradise Basin. If there is no flood the home and land together will be worth $2400. If there
Leto [7]

Answer:

$2,554

Explanation:

The computation of value is shown below::-

Assume insurance purchase is N units

C_n_f = Land\ - Flood\ insurance

= $2,400 - $0.2 per dollar

C_f = Land\ worth\ after\ flood - 0.2\ M + M

= $600 - 0.2 M + M

= $600 + 0.8 M

C_n_f = a\ - \frac{C_f}{b}

$2,400 - $0.2 M = a - ($600 + 0.8 M) ÷ b

$2,400 - $0.2 M = a - $600 ÷ b - 0.8 ÷ b

now we will equate the situation

-0.2 M = 0.8 M ÷ b

-0.2 = 0.8 ÷ b

b = 4

Now, we will put the value of b to find out the value of a

a - $600 ÷ b = $2,400

a - $600 ÷ 4 = $2,400

a - $150 = $2,400

a = $2,400 + $150

a = $2,550

Now we will find out the a and b by putting the values

= a + b

= $2,550 + 4

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3 years ago
What part of the cover letter explains how the applicant's qualifications meet the needs of the company?
weqwewe [10]
Your answer is C Hope that helps
3 0
3 years ago
Read 2 more answers
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melomori [17]

Answer:

132,000$ will be recorded by west as amortization expense for the year.

Explanation:

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In case of leased asset the useful life taken for calculation of depreciation is lower of 1) Useful life 2) Lease term as per applicable accounting standards.

So we have taken 5 years to charge depreciation on Straight line method.

Hence by dividing 660000 by five we get our answer.

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3 years ago
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Zolol [24]

You didn't put all the alternatives, but I understand economics and I know exactly that concept.

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