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inna [77]
3 years ago
15

Barnes Enterprises has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a price

of $958. At this price, the bonds yield 8.9 percent. What must the coupon rate be on the bonds

Business
1 answer:
Pachacha [2.7K]3 years ago
8 0

Answer:

8.36%

Explanation:

To find out the coupon rate, first we have to determine the PMT which is shown in the attachment below:

Given that,  

Present value = $958

Future value = $1,000

Rate of interest = 8.9%

NPER = 14 years

The formula is shown below:

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

The present value come in negative

So, after solving this, the yearly payment is $83.64

Now the coupon rate is

= $83.64 ÷ $1,000

= 8.36%

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William pays $500 premium every six months for automobile insurance with collision coverage. His deductible is $750. William cau
stich3 [128]

<span>A collision coverage type of insurance only the covers the cost that is incurred due to damage to your car. It does not include the cost for the other car. Therefore you will have to pay the total of $1,100</span>

6 0
3 years ago
Read 2 more answers
18. HexaCo has various policies and procedures pertaining to the company’s operations. These policies and procedures are routine
anyanavicka [17]

Answer: Control activities

                 

Explanation: In simple words, control activities refers to the policies and procedures that help the management to reduce the risk they have identified. These activities reports as a support structure for other operating activities of the business.

In the given case, hexa company has policies and procedures that supports managements initiatives. Hence the given case depicts the control activities element.

3 0
3 years ago
Mikail's perfectly competitive camera memory card–producing factory is making positive economic profits. If the price of memory
irina1246 [14]

Answer:

B. $6000

Explanation:

Given that

Price = $9

Average total cost (ATC) = $7

Output (Q) = 3000

Two methods can be used in calculating profit in this case.

The first method is

Profit = (price - ATC) × Q

= (9 - 7) × 3000

= 2 × 3000

= $ 6000

The second method is

Profit = Total revenue (TR) - Total Cost (TC)

Where TR = Price × Q = 9 × 3000 = $27000

TC = ATC × Q = 7 × 3000 = $ 21000

Therefore,

Profit = 27000 - 21000

= $6000

Any method used will result to the same answer.

NOTE THAT,

ATC = Total cost / Q.

So change of formula was used to obtain Total cost from this formula.

4 0
3 years ago
According to the specifications that a customer gave to a manufacturer, the length of a shoe should not deviate from the correct
vichka [17]

Answer:

Capability ratio = 1.04166

Explanation:

Given:

Length of a shoe (not deviate) = 1 mm

Standard deviation of this length = 0.32 mm

Number of standard deviations = 3

Find:

Capability ratio = ?

Computation:

Capability ratio = [Length of a shoe (not deviate) / Standard deviation of this length] / Number of standard deviations

Capability ratio = [1 / 0.32] / 3

Capability ratio = 3.125 / 3

Capability ratio = 1.04166

Capability ratio is greater than 1, therefore process is capable.

4 0
3 years ago
A firm purchased 50 units of materials with a unit price of $1.30 on June 1. On June 15, the firm purchased 50 units with a unit
dsp73

Answer: $83

Explanation:

Given that,

On 1 June,

Materials purchased = 50 units

Unit price of material = $1.30

On June 15,

Materials purchased = 50 units

Unit price of material = $1.20

Total cost of 65 units:

= (Material purchased on 1 June × Unit price of material) + [(65 units - 50 units) × $1.20]

= (50 units × $1.30) + (15 units × $1.20)

= $65 + $18

= $83

8 0
3 years ago
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