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Grace [21]
3 years ago
7

Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, and selling for $1,382.01. At this

price, the bonds yield 7.5 percent. What is the coupon rate?
Business
1 answer:
insens350 [35]3 years ago
4 0

Answer: 12%

Explanation:

A coupon payment on a bond is simply the annual interest payment which the bondholder will get from the bond's issue date till the bond matures. It should be noted that coupons are described in their coupon rate, and this is calculated when one adds the sum of the coupons that are paid per year and then divide it by the face value to f the bond.

Im this case, we are told that Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, and selling for $1,382.01 and that at this price, the bonds yield 7.5 percent.

Using Excel, the coupon payment will be $120. The coupon rate will now be:

= Coupon payment/Face value

= 120/1000

= 0.12

= 12%

Therefore, the coupon rate is 12%

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Zoning laws can be beneficial to a city's residents THEY CAN PREVENT NEW DEVELOPMENT THAT WOULD HARM ESTABLISHED RESIDENTS.

Zoning laws states how a property in a certain zone will be used. It specifies which zones are for commercial or residential use. Zoning laws may also specify the sizes of the lots, placement, bulk, and height of the structures. 
3 0
3 years ago
Read 2 more answers
The common stock of Ecolab pays an annual dividend of $1.84 a share. The company has promised to maintain a constant dividend re
vladimir2022 [97]

Answer:

$13.53

Explanation:

Data provided in the question:

Annual dividend per share, D0 = $1.84

Cost of capital, ke = 13.6% = 0.136

Now,

since,

the dividend remains the constant, the growth rate (g) of the dividend will be 0%

Also,

Current price = [ D0 × ( 1 + g ) ] ÷ [ ke - g ]

= [ $1.84 × ( 1 + 0% ) ] ÷ [ 13.6% - 0% ]

= $1.84 ÷ 0.136

= $13.53

8 0
4 years ago
Hey what time do you start work tommorow babe tell me now or i will come to yoyur house tonigh
spayn [35]

Explanation:

9 am  why

6 0
3 years ago
Read 2 more answers
Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $37 variable and $10 fixed. Because it h
Gwar [14]

Answer:

See below

Explanation:

Option of whether Pine street Inc. should sell unfinished book cases

Sales per unit

$59

Less:

Variable cost per unit

$37

Contribution per unit

$22

Less:

Fixed cost

$10

Operating profit

$10.

Option of whether Pine street inc. should sell finished book cases

Sales per unit

$75

Less :

Variable cost per unit

$8

Contribution per unit

$67

Less :

Fixed cost

$10

Operating profit

$57

Therefore, it is recommended that Pine street inc. should sell finished book cases because that would yield the highest operating profit.

4 0
3 years ago
An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of var
ziro4ka [17]

Complete Question:

An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is:

Group of answer choices

A) the safety of the principal invested.

B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.

C) the yield is always higher than mortgage yields.

D) the yield is always higher than bond yields.

Answer:

B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.

Explanation:

An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.

Generally, common stocks are considered by financial experts or broker-dealers to be a suitable type of investment of variable annuities because the prices of common stocks in the market are not fixed and as such they are affected by economical changes such as inflation or recession.

5 0
4 years ago
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