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Crank
3 years ago
8

Suppose Ford Motor Company issues bonds with a face value of ​$5 comma 000 and an annual coupon payment of ​$200. What is the in

terest rate Ford is paying on the borrowed​ funds?
Business
1 answer:
ankoles [38]3 years ago
4 0

Answer:

Interest rate = 4%

Explanation:

Given:

Face value of bond = $5,000

Annual coupon payment = ​$200

Interest rate = ?

Computation of interest rate on bond:

Interest rate = (Annual coupon payment / Face value of bond ) × 100

Interest rate = ($200 / $5,000) × 100

Interest rate = (0.04) × 100

Interest rate = 4%

Therefore, annual interest rate on bond is 4%

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A mutual funds is the instrument that may not be purchased on margin but can be used as collateral for a margin loan after being held for 30 days.

<h3>What is purchased on margin?</h3>

This generally involves the act of getting a loan from your brokerage and then, using the money from such loan to invest in more securities than you can buy with your available cash.

Through the method, an investors can amplify their returns if their investments outperform the cost of the loan itself.

In conclusion, the mutual funds can be purchased on margin. However, it  may be used as collateral for a margin loan after being held for 30 days.

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1 year ago
Dr. Tanaka was served with a malpractice lawsuit based on allegedly removing the wrong organ. Following discovery, it becomes cl
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The lawyer should make a motion for summary judgment.

<h3><u>Explanation:</u></h3>

A motion for summary judgement can be considered as a request that is made to the court for ruling other party that it has no case since there were no facts on the case. When the party makes the motion, it claims that the jury must rule in the moving party's side or the case should not move before a jury.  

A party can involve in filing a motion for summary judgment when the party feels that there are no facts in the case or problem. In the example given, there exists no evidence against the doctor and hence no jury can rule in favor of the plaintiff. Thus, the Doctor's lawyer should make a motion for summary judgment.

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3 years ago
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Which days can be selected as the first day of the week for a calendar?
Dovator [93]
Sunday or Monday, depending on what loacation.
6 0
3 years ago
Suppose two firms are in a game​ situation, and they each must decide on a strategy regarding whether to select a high price or
swat32

Answer: Both to select low prices.

Explanation:

One of the vital goal of doing business is profit irrespective of the firm. Every business has to deal with funds and when funds is involved profit has to be made even while serving the client in satisfying conditions. The profit enables the firm to be ran smoothly; it's operations and have a reason to be said that their in business. Every firm ooks out for opportunities to make rofit while giving their best. According to the paragraph profits are high when the price of the commodity is reduced, each firm will reduce it's pricing to ensure they make profit.

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3 years ago
The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods
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Answer: 4,375 units

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The budgeted production for July will be;

= July sales + Ending inventory - Beginning inventory

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Budgeted production = 4,200 + 1,225 - 1050 = 4,375 units

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3 years ago
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