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Nostrana [21]
3 years ago
6

The current price of a 10 year $1000 par value bond is $1158.91. Interest on this bond is paid every 6 months, and the nominal a

nnual yield is 14%, Given these facts, what is the annual coupon rate on this bond
Business
1 answer:
tatuchka [14]3 years ago
4 0

Answer:

16.22%

Explanation:

To calculate the annual coupon rate, you can use the following formula:

Coupon Rate= (Annual coupon payment/Par value of the bond)* 100%

Annual coupon payment= $1158.91*14%= 162.2

Par value of the bond= $1000

Coupon Rate= (162.2/1000)*100%

Coupon Rate=0.1622*100%

Coupon Rate= 16.22%

The annual coupon rate on this bond is 16.22%

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The event that will happen if he raised his price is If Kyle raises his price he will lose all of his customers. All of the people want to buy product who is low costing because they can save much money and they hate buying things that is so much expensive. The answer to this question is  if Kyle raises his price he will lose all of his customers.
6 0
3 years ago
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, I
sleet_krkn [62]

Answer:

17.6%

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the rate of return on the stock by using following formula:-

Expected Provide Rate of Return = Estimate Rate of Return on the Stock + (Expected IP × Stock with a Beta on IP) + (Expected IR × Stock with a Beta on IR)

Before estimate rate of return on the stock

= 16% = α + (4% × 1) + (5% × 0.6)

= 16% = α + (0.04 × 1) + (0.05 × 0.6)

= 0.16 = α + 0.04 + 0.03

= 0.16 - 0.04 - 0.03 = α

α = 0.09 =9%

Rate of return after the changes

= 9% + (5% × 1) + (6% × 0.6)

= 0.09 + 0.05 + 0.036

= 0.176

= 17.6%

According to the analysis, New rate of return on the stock is 17.6%

8 0
3 years ago
Define “supply” for commodity
Andrews [41]

Answer:

The supply of a commodity is the amount of the commodity which the sellers or producers are able and willing to offer for sale at a particular price, during a certain period of time.

Note: Hope it helped

6 0
2 years ago
Read 2 more answers
When organizations face a turbulent environment, intense competition, and the need to move fast, the most appropriate leadership
konstantin123 [22]

When organizations face a turbulent environment, intense competition, and the need to move fast, the most appropriate leadership would be: transactional subordinate centered free rein transformational task-centered.

<h3>How can an organization attend to  turbulent environment, intense competition?</h3>

For an to respond to  turbulent environment, intense competition, then the kind of leadership needed is  transformational task-centered that would be able to observe the business environment to make necessary decision.

Learn more about the leadership at brainly.com/question/25927714

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6 0
2 years ago
Which of the following would NOT cause an increase demand for iPhones? Group of answer choices price of comparable Android phone
aliya0001 [1]

Answer:

price of iPhones decreases

Explanation:

A decrease in price increases quantity demanded but does not  increase demand.

iPhones and Android phones are substitute goods.

Substitute goods are goods that can be used in place of another good.

An increase in the price of androids increases the cost of androids. So, consumers would increases their demand for iPhones.

Because iPhone is assumed to be a normal good. An increase in the price of iPhones would increase the demand for the good.

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

Data plans and iPhones are complement goods.

Complementary goods are goods that are consumed togethe  

A decrease in the price of data plans would increase the demand for iPhones.

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3 years ago
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