1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rewona [7]
3 years ago
5

Volbeat Corporation has bonds on the market with 10.5 years to maturity, a YTM of 6.2 percent, a par value of $1,000, and a curr

ent price of $945. The bonds make semiannual payments. What must the coupon rate be on the bonds?
Business
1 answer:
densk [106]3 years ago
7 0

Answer:

The answer is 5.47 percent

Explanation:

Firstly, we find coupon payment (PMT).

it can be gotten from the price (present value) of bond formula:

PV = PMT/(1+r)^1 + PMT/(1+r)^2 ....... PMT + FV/(1+r)^n

N = 10.5 years

1/Y = 6.2 percent

PV = $945

PMT = ?

FV = $1000

Using a Financial calculator to input all the variables above,

Annual PMT = $54.72

Semi annual will be $54.72/2= $27.36

Coupon rate is Annual PMT /par value

= $54.72/1000

0.0547 or 5.47 percent

You might be interested in
If a ppf has a negative slope and is bowed​ out, we experience​ ________ opportunity costs as we continue to move down and to th
Snowcat [4.5K]

Answer:

Explanation:

Production possibility frontier (ppf) is a graph which shows the existence of opportunity cost of moving from one combination of goods to another . Its slope is always negative and bowing out or downward sloping because opportunity costs always diminish or go down due to law of diminishing marginal return.

4 0
3 years ago
The managers most important food safety responsibility is training you to
Advocard [28]
There are lots of responsibilities of a manager training their employees to handle food. Such as training the employees to clean the food prep area, thoroughly cook food and store food in the right temperature, and to wash their hands as well as tie their hair back.
8 0
3 years ago
Read 2 more answers
JCS Incorporated experienced the following transactions during its first year of business. The company purchased $16,000 of merc
12345 [234]

Answer:

46.67%

Explanation:

Gross margin is the ratio of gross profit to the total sales. The gross profit is the difference between the sales and cost of goods sold. Other cost given such as land and selling and distribution cost make up assets and  operating expenses respectively.

Hence

Gross profit = $30,000 - $16,000

= $14,000

Gross margin = $14,000/$30,000

= 0.4667

The company's gross margin is 46.67%.

4 0
3 years ago
Which method is the most efficient method to use to solve x^2+6x-7=0?
sweet-ann [11.9K]
(x+7)(x-1) = 0 ^x^2 + 6x - 7 = 0x               7x              -1
Its really easy if you think it this way.

7 0
3 years ago
Read 2 more answers
In its first year of existence (year 1), SCC corporation (a C corporation) reported a loss for tax purposes of $30,000. How much
devlian [24]

Answer:

SCC won't pay any tax

Explanation:

Their loss of $30,000 in year 1 will be unused and made available to counterbalance the total generated earnings in year 2.

The $20,000 earnings in year 2 can be used to counterbalance the whole taxable income; so, SCC will not pay pay tax. SCC will have a ($10,000) loss carryover available for year 3 and beyond

6 0
3 years ago
Other questions:
  • The Average Product of Labor is __________.
    14·1 answer
  • Gladstone Co. has expected sales of $360,000 for the upcoming month and its monthly break even sales are $342,500. What is the m
    6·1 answer
  • A common reason for redeeming a bond prior to its maturity date is ______.
    5·1 answer
  • Sunshine Smoothies Company (SSC) manufactures and distributes smoothies. SSC is considering the development of a new line of hig
    9·1 answer
  • If there is a fall in the interest rate, ______.
    11·2 answers
  • Select the statement that is not a component of a standard housing lease?
    15·1 answer
  • Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity
    13·2 answers
  • LolLloleoreniiwkv ibyuerw
    12·1 answer
  • A product priced at $5 has annual sales of 1,000 units. When price is reduced to $4, quantity increases to 1,250 units. Other th
    9·1 answer
  • The following table contains statements that provide some analysis of policies that address globalization.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!