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Maurinko [17]
3 years ago
11

A bond has a par value of $1,000, a current yield of 7.25 percent, and semiannual coupon payments. The bond is quoted at 97.66.

What is the coupon rate of the bond
Business
1 answer:
zubka84 [21]3 years ago
8 0

Answer:

7.08%

Explanation:

Face Value = $1,000

Current Price = 1000 x 97.66% = 976.6

Current yield = 7.25%

We can find the coupon rate by a simple formula

Coupon Rate = (Interest / Face value) x 100

We need to find interest first in order to find coupon rate

YTM = Interest / Current price

7.25% x 976.6 = Interest

70.7035 = Interest

Coupon Rate = (70.8035 / 1000) x 100

Coupon Rate = 7.08%

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Answer:

Toyosan's air bag was defective because it did not meet the expectations of a reasonable consumer.

Explanation:

Since the airbag was not as effective as it was expected by the customers, a suit against the car manufacturers from product liability may see the court conclude that the air bag was defective since it did not meet the expectations of a reasonable consumer which would have been protecting her head from hitting the steering wheel which still occured even tho the air bag was deployed.

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Answer:

The best estimate of the company’s cost of equity is 12%

Explanation:

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= 4.9 % + ( 6% * 1.2)

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= [( $ 1.30 * 1.08) / $ 36] + 8%

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6 0
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Sun Inc. assigns $6,000,000 of its accounts receivables as collateral for a $2 million 8% loan with a bank. Sun Inc. also pays a
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Answer:

The answer is: Assigning accounts receivables as collateral for a bank is not a asset transfer.

Explanation:

Even as the bank offers Sun Inc. with a factoring limit, the accounts receivables are still in the firm's accounting book. The firm has the obligations to go after their debtors for collections. The account receivables are transferred to creditors when a company becomes defaulted or bankrupted.

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Many employers are wary of giving references for which of the following reasons? They suck up resources and energy from manageme
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Which is a natural property of nicotine?
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