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blagie [28]
3 years ago
14

Tutak Industries issued a $1,000 face value bond a number of years ago that will mature in eight years. Similar bonds are yieldi

ng 8%, and the Tutak bond is currently selling for $1,291.31. Compute the coupon rate on this bond. (In practice, we generally are not asked to find coupon rates.) (Hint: Substitute and solve for the coupon payment.)
Business
1 answer:
s2008m [1.1K]3 years ago
7 0

Answer: The coupon rate is 13%

Explanation:

We would first calculate the Coupon Payment and then later using the coupon payment we would compute the Coupon rate.

PV = \frac{FV}{(1+r)^{N} } + A [[\frac{1-\frac{1}{(1+r)^{N} } }{r} ]]

Where,

FV = $1,000

PV = $1,291.31

r = 8%

N = 8 Years

A = Coupon Payment

1291.31 = \frac{1000}{(1+0.08)^{8} } + A [\frac{1-\frac{1}{(1+0.08)^{8} } }{0.08} ]

Solve for A

A = 130.69

The coupon payment is $130

Coupon rate = (Coupon payment / Face value) x 100

                     = \frac{130}{1000} x 100

                     = 13 %

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astraxan [27]

Answer:

c. develop a relationship with the person at the center of the grapevine so you can quickly spread and receive information throughout the organization

d. paying attention to what is said on the grapevine will give you a good serve of what employees are really thinking and feeling about the company.

Explanation:

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3 years ago
jervis sells 3400 of its accounts receivable to northern bank in order to obtain necessary cash northern bank charges a 2% facto
lesya692 [45]

Answer:

Factoring fee = 2% * Account Receivable

= 2% * $3,400

= $68

​

Date  Account Titles and Explanation     Debit    Credit

          Cash                                                   $3,332

          Factoring expenses                           $68

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          (To record the receipt of cash against the receivables)

6 0
2 years ago
Ellie has been working for an engineering firm and earning an annual salary of $80,000. she decides to open her own engineering
goldenfox [79]
Ellie would have annual expenses of $15000+$3000+$1000+$1200+$35000=$55,200. If she cashed in her $20.000 deposit then her balance owing would be $35,200 so she would have to make at least this much or preferably the $55,200 to break even., 
7 0
3 years ago
Consider a Cobb-Douglas production function with three inputs. K is capital (the number of machines), L is labor (the number of
olga_2 [115]

Based on the above scenario, the production function is Y=K1/3L1/3H1/3.

<h3>What is  production function?</h3>

The word production function is known to be an equation that is said to be the one that shows the relationship between the quantities of productive factors (that is labor and capital) that are said to be used and also the number of product that has been obtained.

Note that from the above, the equation that stands for Cobb-Douglas production function with three inputs. K is capital (the number of machines), L is labor, and H is human capital  is Y=K1/3L1/3H1/3.

Learn more about production function from

brainly.com/question/25672041

3 0
2 years ago
In 2007, the economy slipped in a recession that many called the worst since the Great Depression. This caused people to experie
Elis [28]

Answer:

an increase in equilibrium price and an indeterminate effect on equilibrium quantity.

Explanation:

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If ramen is an inferior good, when income falls its demand would increase. This would lead to a rise in quantity and price.

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The combined effect would be an increase in equilibrium price but an indeterminate effect on equilibrium quantity.

I hope my answer helps you

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