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
padilas [110]
3 years ago
13

Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a curren

t price of $1,108.60. At this price, the bonds yield 7.5 percent. What is the coupon rate? Select one: a. 9.01 percent b. 8.46 percent c. 8.78 percent d. 9.32 percent e. 8.93 percent
Business
1 answer:
Mandarinka [93]3 years ago
6 0

Answer:

c.) 8.78 percent

Explanation:

You can solve this question using a financial calculator. I am using (Texas Instruments BA II plus)

<em>Note: If using the same calculator as me, key in the numbers first before the function .</em>

Total duration of investment ;N = 14

YTM ; I/Y  = 7.5%

Face value or Par value; FV = 1000

Current Price; PV = -1108.6

then CPT PMT = $87.793

Coupon payment = $87.793

Coupon rate = (Coupon payment / Par value) *100

Coupon rate = (87.793/1000) * 100

                    =0.08779 *100

                    = 8.779%

Therefore, the coupon rate = 8.78%

You might be interested in
So, I’ve decided to leave Brainly. I had a great time helping people, so I hope you have a great day. :) use this time to miss m
liberstina [14]

Answer:

why now when people still need help alot of help

Explanation:

6 0
3 years ago
Read 2 more answers
What criteria do accountants use to decide whether to use present or future values in accounting statements?
Airida [17]

Answer:

Present value is nothing but how much future sum of money worth today. It is one of the important concepts in finance and it is a basis for stock pricing, bond pricing, financial modeling, banking, and insurance, etc. Present value provides us with an estimated amount to be spent today to have an investment worth a certain amount of money at a specific point in the future. Present value is also called a discounted value. It is an indicator for investors that whatever money he will receive today can earn a return in the future. With the help of present value, method investors calculate the present value of a firm’s expected cash flow to decide if a stock is worth to invest today or not.

The formula for calculating PV is shown below

PV = CF/ (1+r)n

Here ‘CF’ is future cash flow, ‘r’ is a discounted rate of return and ‘n’ is the number of periods or year.

Example

Let’s say that you have been promised by someone that he will give you 10,000.00 Rs 5 year from today and interest rate is 8% so no we want to know what the present value of 10,000.00 Rs which you will receive in future so,

PV = 10,000/ (1+0.08)5

PV = 6805.83 (To the nearest Decimal)

So present-day value of Rs 10,000.00 is Rs 6805.83

Explanation:

5 0
2 years ago
Advances in technology like the creation of cheap, lightweight laptops has allowed workers to work from almost anywhere. Please
andriy [413]

Answer:

Got this from the same website you used

Explanation:

Advances in technology like the creation of cheap, lightweight laptops have allowed workers to work from almost anywhere. TRUE.

5 0
2 years ago
Beth's business purchased only one asset during the current year (a full 12-month tax year). Beth placed in service machinery (7
nalin [4]

Answer:

the depreciation expense on the equipment will be 1,785 for tax purpose.

Explanation:

We will look into the MACRS (Modified Accelerated Cost Recovery System)

table for a property of seven years placen into service in the 4th quarter:

Which give us 3.57%

now we multiply the basis by the coefficient and get the value for depreciation

50,000 x 3.57% = 1,785 depreciation expense under MACRS

4 0
3 years ago
Before Kraft introduced Philadelphia Single Size Cream Cheese Spreads, it test marketed them in California markets to see if the
Nitella [24]

Answer:

The right option is (a)

Explanation:

Experimental research is a technique that helps to analyse the initial consumer response before officially launching the project. Kraft has launched an experimental research in California market to test their product and to analyse if the serving was acceptable with the new product. Experimental research generally helps to determine the flaws and loopholes in a product.

4 0
3 years ago
Other questions:
  • What are the big six foodborne illness
    15·1 answer
  • Small businesses are important to the U.S. economy because
    5·1 answer
  • Food Packagers Union represents the workers of Garden Variety, Inc. The company does not require its workers to join the union a
    12·1 answer
  • Which philosopher was a proponent of the phrase "honesty is the best policy"?
    8·1 answer
  • The Petit Chef Co. has 7 percent coupon bonds on the market with 9 years left to maturity. The bonds make annual payments and ha
    9·1 answer
  • Please help will give brainliest
    9·2 answers
  • Jose goes to an all-you-can-eat buffet at a Chinese restaurant and consumes three plates of food. He does not go back for a four
    8·1 answer
  • One feature common to states is _____
    10·1 answer
  • Two hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the for
    6·1 answer
  • Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!