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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%

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Which of the following describes a project and development team?A. The team is responsible for making goods or doing services.B.
NikAS [45]

Answer:

The correct answer is B. They work to solve a particular problem.

Explanation:

A project and development  team is form to solve a particular problem and the members usually belong to different groups, have different functions and are assigned by the project manager to activities for the same project.

5 0
3 years ago
During its most recent fiscal year, Raphael Enterprises sold 360,000 electric screwdrivers at a price of $19.80 each. Fixed cost
Lynna [10]

Answer: Option (d) is correct.

Explanation:

Contribution margin = Fixed cost + Pretax Income

                                  = $1,296,000 + $1,656,000

                                  = $2,952,000

Variable cost = Sales - Contribution margin

                      = (360,000 units × $19.80 per unit) - $2,952,000

                      = $7,128,000 - $2,952,000

                      = $4,176,000

3 0
3 years ago
Last year, you purchased a $1,000 par value bond with a 7.5% annual coupon and a 20-year maturity. At the time of the purchase,
xenn [34]

Answer:

Rate of return = 6.64%

Explanation:

Annual coupon rate = 7.5% = 0.075

Face value = 1,000

Coupon payment = 1,000*0.075 = 75

YTM = 8%

Years = 20

Price of the bond = PV(8%, 20, 75, 7.5%)

Price of the bond = $950.91

Rate of return = Selling price + Coupon payment received - Purchase price / Purchase price

Rate of return = $939.05 + $75 - $950.91 / $950.91

Rate of return = $63.14 / $950.91

Rate of return = 0.0663996

Rate of return = 6.64%

6 0
3 years ago
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Helen [10]

Answer:

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A. Production, fiance, marketing, and customer service.

Explanation:

These elements make up a business organizational structure.  Functional structures and hierarchies revolve around these basic elements.  Production in some organizations will be described as operations.  It is the core of the business.  Revenues that sustain the business are generated from production or operations.  Finance handles the revenues and the costs associated with running a business.  Marketing ensures that the goods and services from production or operations are made known to customers through research, information acquisition, and customer education.  Finally, customer service ensures good relationships between the business and the customers, who are the chief patrons of the business. These essential elements ensure business success.

4 0
3 years ago
Read 2 more answers
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