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
The two categories of cost comprising conversion costs are
bekas [8.4K]

Answer:

Explanation:

Direct labor and factory overhead

3 0
2 years ago
State Street Beverage Company issues​ $805,000 of​ 9%, 10-year bonds on March​ 31, 2017. The bonds pay interest on March 31 and
Citrus2011 [14]

Answer:

Option (B) If the market rate of interest is 10%, the bonds will issue at a discount

Explanation:

Interest rate risk is defined as the risk changing which, interest rates will affect bond prices. When current interest rates are greater than a bond's coupon rate, the bond will be sold below its face value at a discount. When interest rates are less than the coupon rate, the bond can be sold at a premium--higher than the face value.

7 0
3 years ago
Suppose you are a manager at an advertising agency who is eager to utilize Covey's advice about delegation. Today, you need to w
yan [13]

<u>Answer:</u>

<em>Customer administrations</em><em> supervisors interface an organization's imaginative endeavours with publicists' needs, from driving the main gathering on another record to looking into </em><em>news sources for a crusade</em><em>. </em>

<u>Explanation:</u>

They keep up associations with administrators of customer organizations, supervise the office's record group over all orders and create procedures for customers.

So, the customer administrations supervisor is responsible for all parts of the conveyance of work to the customer. Be that as it may, the record head's job goes past only giving a customer what he needs.

8 0
3 years ago
Suppose that many people who earn a living raising cows decide they can make more money selling t-shirts and switch occupations.
zimovet [89]

Answer:

B. There will be a decrease in supply.

Explanation:

The switch would cause the amount of cow rearers to fall. The amount of cow available would fall and there would be a decrease in the supply of beef.

I hope my answer helps you

5 0
3 years ago
In a concentrated network configuration:
seraphim [82]

Answer:

B

Explanation:

Here, in this question, we are to select which of the options is best.

The correct answer to this question is that in a concentrated network configuration, firms allow each site on the network to operate with full autonomy.

What this means is that each site in the network operate independently of the other sites.

A site is thus an autonomous entity but still part of the concentrated network

7 0
3 years ago
Other questions:
  • If the government imposes a price floor on wheat at $5 and agrees to purchase any surpluses, how much will the government be for
    8·1 answer
  • ABC Bank is offering 3.6 percent compounded quarterly on its savings accounts. You deposit some amount of cash in the saving acc
    10·1 answer
  • A court ruling against the wrongful dismissal of employees is a development in the _____ component of the general environment.
    12·1 answer
  • Thrush Corporation, a calendar-year C corporation, files it's 2018 Form 1120, which reports taxable income of $200,000 for the y
    14·1 answer
  • Darian has a gourmet cupcake business and needs a website to compete with the other bakeries in his area. He has a Google My Bus
    8·1 answer
  • In determining whether a particular act occurred within the scope of employment, courts will evaluate whether the employee’s act
    13·1 answer
  • A ____________ approach to solving the recession in this example would have no uncertainty regarding the attainment of the short
    12·1 answer
  • "Smokers are more likely to be murdered than nonsmokers." This statement is an example of: Select one: a. the fallacy of uninten
    15·1 answer
  • Which of the following describes PLUS loans? O Loans that are taken out by parents and have high interest rates
    12·1 answer
  • Trial Balance Practice
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!