Answer:
Coupon rate = 5.8%
Explanation:
The price of a bond is the present value (PV) of the future cash flows discounted at its yield.
So we will need to work back to ascertain the coupon rate
Step 1
<em>Calculate the PV of redemption value and PV of interest payments</em>
<em>PV of Redemption </em>
= 1.067^(-5) × 1000
=723.06
<em>PV of the annual interest rate</em>
= price of the bond - PV of redemption
= $964- 723.06
= 240.934
Step 2
<em>Calculate the interest payment</em>
Interest payment = PV of redemption value / annuity factor
Annuity factor =( 1 -(1+r)^(-n) )/r
<em>Annuity factor at 6.7% for 5 years</em>
Factor =( 1-1.067^(-5) )/0.067
= 4.1333
Interest payment = <em>PV of the annual interest rate</em> / Annuity factor
Interest payment=
=240.93/4.1333
=58.290
Step 3
<em>Calculate the coupon rate</em>
Coupon rate = interest payment/ par value
Coupon rate = (58.290/1000) × 100
= 5.8%
Coupon rate = 5.8%
Answer:
The amounted contributed to U.S.GDP is $2 million
Explanation:
First and foremost, the question reiterated that $1 m is due to U.S-owned equipment company and U.S.managers working in Mexico,this is where the key to unlocking the question lies.
On the basis that the money is shared equally between the equipment company and the U.S managers working in Mexico,each group gets $500,000 which is an input for the car manufacturer. However, $2.5m worth of cars are sold to U.S-an output ,deducting the $500000 due to the managers from the output value gives $2m
Answer:
d. Account receivable days = 72 days
Explanation:
The average receivable days. This is the average length of time it takes a business to collect the amount due from its customers in respect of credit sales.
When a business sells on credit , customers are expected to settle their account within a given credit period. Account receivable days is computed to evaluate how well a business is managing its investment in the account receivables.
The shorter the better, as it means that custmers are paying on time, thereby preserving cash position for the business and reducing the risk bad debt.
A prolonged account receivable days means a poor credit control system which comes with the attendants risk bad debt and additional financing costs for the business.
To compute the account receivable days (debtors collection period), use this formula:
Account receivable days= (Average account receivable/Credit sales) × 360 days.
So we apply this to the question:
Account receivable days= ( 1,200,000/6,000,000) × 360 days
= 72 days
This means that the tax you owe is less than what you paid for your taxes. Another circumstance is when you are entitled to tax credits. IRS stands of Internal Revenue Service. The circumstance in which you might receive a tax refund from the IRS if you have paid more in taxes than you owed for the year.
Answer: Adaptive selling
Explanation: Adaptive selling could be referred to a flexible selling approach whereby the salesperson's response or actions are guided or determined by the type of consumer, the context or sales scenario and most especially the feedback received from the consumer. This means the kind of question and sales approach employed may be different depending on the consumer in question. In the context above, the sales person stopped asking question immediately the consumer hinted at requiring thee cheapest service, and showed him an evidence of what his company actually offers. The approach may be different for other consumers.
