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
luda_lava [24]
4 years ago
14

Big Canyon Enterprises has bonds on the market making annual payments, with 12 years to maturity, a par value of $1,000, and a p

rice of $1,030. At this price, the bonds yield 6.14 percent. What must the coupon rate be on the bonds? (
Business
1 answer:
lana [24]4 years ago
5 0

Answer:

The answer is 6.8percent

Explanation:

We have been asked to find the coupon payment here. It can be gotten using the below formula:

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

N = 12 years

1/Y = 6.4 percent

PV = $1030

PMT = ?

FV = $1000

Using a Financial calculator to input all the variables above, the annual PMT is $67.66

Lets convert the PMT to coupon rate which the formula is:

Coupon rate is Annual PMT /par value

= $67.66/1000

0.06766 or 6.8percent

You might be interested in
Describe China’s strategy in Africa.
Lemur [1.5K]

Answer:

The strategy for China seems to be to use the resources that Africa has in its hands from the small groups that control parts of the continent in order to fund themselves as well as help increase revenue for the countries that allow them to do so.

Explanation:

8 0
3 years ago
The Jones Company has decided to undertake a large project. Consequently, there is a need for additional funds. The financial ma
vova2212 [387]

Answer: $25

Explanation: Dividends are the returns the shareholders of the company get for investing the the company and bearing the risk and it is calculated as follows :-

Dividend = (value of share) * (rate of return)

Here we have,

Dividend = $5

rate of return = 20%

Therefore,

value\:of\:share\:=\:\frac{dividend}{rate\:of\:return}

value\:of\:share\:=\:\frac{\$5}{20\%}

                                = $25

4 0
4 years ago
Which company has the highest level of sales ($) at the beginning of the simulation? Allstar B & B Curall Driscol Ethik
irina1246 [14]

Answer:

Ethik

Explanation:

Ethik has highest level of sales at the beginning of simulation. The company Ethik has well established brand name and customers buys its products even if they are expensive as the main vision of the company is not to compromise on the quality of product.

6 0
3 years ago
When positive externalities are present in a market a. private benefits will be greater than social benefits. b. social benefits
Oxana [17]

Answer:

b. social benefits will be greater than private benefits

Explanation:

Positive externalities can be defined as those that produce positive effects for society in relation to the consumption of a good or service.

This is because the social benefit is the sum of the private benefit plus the sum of the external benefit.

An example of positive externality pertinent to the present is the fact that vaccinating people generates greater positive effects on society, because when vaccinating an individual there is less chance of having more people infected with some disease.

So it is correct to say that the social benefits will be greater than the private ones. Letter b.

5 0
3 years ago
The following are important reasons why we maintain our tools, implements,and equipment except: no​
Anastaziya [24]

To assure the operational readiness of the tools, implements, equipment and

maximum return on investments.

5 0
3 years ago
Other questions:
  • Addie, Brady and Carson form Capital City Partnership. The Partnership Agreement provides profits and losses are divided equally
    14·1 answer
  • "One of our longstanding cross-functional teams is being led by Ingrid. She is very knowledgeable and highly organized, so we wo
    11·1 answer
  • Which is true about what a customer typically expects from a support technician?
    5·1 answer
  • Jake manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash. On payday, he immediately g
    11·1 answer
  • If a firm lies within a country with ________ or ________ domestic capital markets, it can achieve lower global cost and greater
    10·1 answer
  • A business maintains subsidiary accounts for each of its customers. On May​ 15, the business provides services on​ account: $1,9
    13·1 answer
  • Why do you think that continuing to add employees, stops to be effective at a certain point ?​
    15·1 answer
  • You made an investment of $15,000 into an account that paid you an annual interest rate of 3.8 percent for the first 8 years and
    15·1 answer
  • How does increasing interest rates decrease inflation.
    7·1 answer
  • A person with a salesperson license who wishes to perform the acts requiring a real estate license must:____.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!