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son4ous [18]
3 years ago
5

Treasury bonds paying an 8% coupon rate with semiannual payments currently sell at par value. What coupon rate would they have t

o pay in order to sell at par if they paid their coupons annu- ally? (Hint: What is the effective annual yield on the bond?)
Business
1 answer:
topjm [15]3 years ago
8 0

Answer: 8.16%

Explanation:

The Effective Annual Yield is the interest rate that converts an interest rate that compounds more than once a year to an annual rate.

Expressed by;

= (1 + interest/number of times compounded per year)^n - 1

= ( 1 + 0.08/2)^2 - 1

= 1.0816 - 1

= 8.16%

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Given 
   $1.37 = share month
   2.8 % increase 
   11.6 % returned
Find how much pay to purchase one share of this stock 

$1.37 x 0.028 = 0.03836
$1.37+0.03836 = 1.40836
$<span>1.40836 x .116 = 0.16336976
$</span>1.40836+<span>0.16336976 = $1.57 

The answer is $1.57 to purchase one share of this stock today.</span>
6 0
3 years ago
Bike St. Pete currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers: Direct
Tpy6a [65]

Answer:

$78,000

Explanation:

Total cost of producing 2,000 tires:

= [(Direct materials + Direct manufacturing labor + Variable manufacturing overhead) × 2,000 units] + Fixed cost

= [($20 + $3 + $6) × 2,000 units] + ($10 × 2,000 units)

= $58,000 + $20,000

= $78,000

Therefore, the total cost of producing 2,000 tires is $78,000.

8 0
3 years ago
On january​ 1, 2017​ hillop, inc. had total assets of​ $370,000. during the​ year, the company purchased new machinery worth​ $8
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5 0
3 years ago
One way to support the domestic marketing campaign is through industry participation. List three other pillars of this campaign.
Whitepunk [10]

Answer: strategic pillars: content, data, and execution

Explanation:

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Every Adult needs a will
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4 years ago
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