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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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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Use the contribution margin ratio to project operating income​ (or loss) if revenues are $ 520.000 and if they are $ 1.040.000. ​

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<u />

Contribution margin ratio= (selling price - unitary varaible cost)/ selling price

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