1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
STatiana [176]
3 years ago
9

Barnes Enterprises has bonds on the market making annual payments, with 17 years to maturity, a par value of $1,000, and a price

of $969. At this price, the bonds yield 8.1 percent. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Business
1 answer:
Eva8 [605]3 years ago
5 0

Answer:

7.76%

Explanation:

In this question, we use the PMT formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

Present value = $969

Future value = $1,000

Rate of interest = 8.1%

NPER = 17 years

The formula is shown below:

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

The present value come in negative

So, after solving this, The PMT would be $77.58

The coupon rate is shown below:

= (Coupon payment ÷ par value) × 100

= ($77.58 ÷ $1,000) × 100

= 7.76%

You might be interested in
A July sales forecast projects that 5,000 units are going to be sold at a price of $12.50 per unit. The management forecasts 2%
Pavlova-9 [17]

Answer:

P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

1.02*5000 units= 5100 units

And the Total August sales would be given by:

P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars

And the correct answer for this case would be:

$63,750

Explanation:

For this case the original number of sales for this case is 5000 units and the unitary price is given by 12.5 \frac{dollars}{unit}

And the total sales for the original case would be given by:

P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

1.02*5000 units= 5100 units

And the Total August sales would be given by:

P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars

And the correct answer for this case would be:

$63,750

7 0
3 years ago
Consider the following statement about real options: Decision tree analysis is more commonly used in valuing securities than rea
maksim [4K]

Answer:

Flexibility option

Explanation:

False: It can be used equally for both.

Firms often have an option to vary inputs to the production or change the output from production. Such options are known as flexible production options.\  real option to expand.

7 0
3 years ago
Compare revolving credit and closed-end credit.
jolli1 [7]

The lender and borrower agree to the amount borrowed, the loan amount, the interest rate and the monthly payment, which depend on the borrower's credit rating.Generally, real estate and auto loans are closed-end credit, but home-equity lines of credit and credit cards are revolving lines of credit or open-end.

5 0
3 years ago
PLEASE HELP!! i’ll give brainliest
Yuliya22 [10]

Answer:

Share your vision with them. Let employees know our plans for your company and your products and services. ...

Keep them in the loop. ...

Involve them in the launch of new products. ...

Reward them for building relationships with customers.

Explanation:

7 0
3 years ago
Read 2 more answers
Imagine you have $30 to spend. You are thinking of buying new soccer shoes because yours
Nitella [24]

Answer:

video game

Explanation:

because I don't go outside, I'm a gamer

5 0
2 years ago
Other questions:
  • Managers who must be familiar with the equal employment opportunity commission regulations are __________ managers.
    11·1 answer
  • "A customer has an existing margin account and wants to write five covered calls against 500 shares of stock in the account. The
    6·1 answer
  • You are asked to be the leader of a task group. You are a new member to the group that is under pressure to meet new production
    12·1 answer
  • The weekly gathering of friends and family in an Iranian-American home, where rituals, food, and cultural practices from Iran ar
    13·1 answer
  • Megan, a human resource manager, recently approved the hiring of five summer interns. She will use ________ to decide which depa
    14·1 answer
  • Preparing T-accounts (ledger) and a trial balance LO P2 Following are the transactions of a new company called Pose-for-Pics.
    6·1 answer
  • The Work-in-Process inventory account of a manufacturing firm shows a balance of $4,090 at the end of an accounting period. The
    15·1 answer
  • assuming that prices rise over time, which inventory cost flow assumption will result in the lowest ending inventory?
    13·1 answer
  • mcgraw hill Question Mode Multiple Choice Question Upper-echelons theory views organizational outcomes as a reflection of the va
    8·1 answer
  • Cane Company manufactures two products called Alpha and Beta that sell for $185 and $150, respectively. Each product uses only o
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!