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Nookie1986 [14]
3 years ago
11

Field Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to maturity is 9.25%, they

pay interest semiannually, and they sell at a price of $850. What is the bond's nominal (annual) coupon interest rate? a. 6.27% b. 7.70% c. 7.32% d. 6.95% e. 6.60%
Business
1 answer:
skad [1K]3 years ago
5 0

Answer:

The correct option is B,7.70%

Explanation:

Annual coupon interest rate=coupon payment/face value

the coupon payment is the semi-annual interest payment*2

the semi-annual interest payment can be computed using the pmt formula in excel:

=pmt(rate,nper,-pv,fv)

rate is the semi-annual yield to maturity which is 9.25%/2=4.625%

nper is the number of semi-annual interest payable by the bond which is 25*2=50

pv is the current price of the bond which is $850

fv is the face value of the bond at $1000

=pmt(4.625%,50,-850,1000)

pmt=$38.50

annual interest =$38.50*2=$77.00

Annual coupon interest=$77/$1000=7.7%

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Review the transactions listed below for thyme advertising company, and classify each transaction as either an operating activit
soldi70 [24.7K]

Answers:


1.       Financing Activity


2.       Operating Activity


3.       Operating Activity


4.       Non Cash Activity


5.       Financing Activity


6.       Non Cash Activity


7.       Operating Activity


8.       Investing Activity


9.       Non Cash Activity


What to remember:


Operating activities are the kinds of activities the company accomplishes to generate profits. This includes cash out flows and inflows.


Investing activities contain the purchase or sale of long-lived assets used in operating the business, or the purchase or sale of investment securities (stocks and bonds of companies other than Thyme).


Financing activities are borrowing money, issuing shares of stock, and paying dividends.

5 0
3 years ago
A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as non-payment is: Select one:
ivolga24 [154]

A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as the non-payment is the option(d) i.e, the Acceleration clause.

<h3>What is a mortgage clause?</h3>

A provision in an insurance policy (such as a fire insurance policy) that allows the designated mortgage to receive payment for property damage or loss.

There are different types of clauses:

  • Acceleration clause
  • Due-On-Sale clause
  • Prepayment Penalty clause
  • Subordination clause
  • Release clause

If the borrower breaches the conditions of the agreement, an acceleration clause in a mortgage or trust deed states that the entire obligation is payable immediately. Additionally, it will specify the circumstances under which a lender may request full loan payback. For instance, home loans frequently feature an acceleration provision that kicks in after a certain number of missed payments.

Most of the time, it is harmful to accelerate a loan. Typically, it denotes that the borrower has fallen behind on payments or broken the terms of the agreement, and the lender is requiring prompt repayment of the whole loan balance to avoid foreclosure.

To know more about mortgage clause refer to: brainly.com/question/13964240

#SPJ4

8 0
2 years ago
Brandon owes his brother $120. He has a stamp collection worth $1,250 and he has $300 in a bank account. He also has a skateboar
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Answer:

Complete the problem. What are you trying to solve for?

Explanation:

4 0
1 year ago
Constant cost industries:
adoni [48]

Answer:

The correct answer to the following question will be Option C.

Explanation:

  • Constant cost industries seem to be a sector wherein the proportion of units produced as well as manufacturing costs every unit maintains the very same irrespective including its amount of manufacturing or rise in population. Which doesn't use input data in the appropriate amount to influence the rates of that same components by a shift in industry revenue.
  • This doesn't even use inputs in such amounts that perhaps the costs of that same inputs will be influenced by a change in business production.

The other choices are not linked to an industry of this kind. Therefore the clarification above is correct.

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4 years ago
Explique la teoría del valor y de un ejemplo con algún bien o servicio de su uso cotidiano. (colombia)
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Answer:

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La economía política siempre ha tratado de responder a la pregunta: ¿de dónde viene el valor? Las respuestas fueron muy divergentes. Van desde la escasez de bienes disponibles, a su utilidad, a la necesidad de remunerar los factores productivos, incluido el capital y considerando su remuneración; - el beneficio - como recompensa por la abstinencia del capitalista, que puede permitirse renunciar al consumo para utilizar la propia riqueza de forma productiva, etc.

6 0
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