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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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Nady [450]

Answer:

b. Less than the effective interest rate

Explanation:

The stated discount rate on this loan is Less than the effective interest rate

As the note is noninterest-bearing note, the stated discount rate on this loan is less than the effective interest rate.

4 0
3 years ago
The method by which consumers acquire products and services
Mariulka [41]
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7 0
3 years ago
A consolidation of two corporations usually requires all of the following except Approval by the board of directors of each corp
kotegsom [21]

Answer:

Receipt of voting stock by all shareholders of the original corporations.

Explanation:

A consolidation is when two or more companies come together to form a new legal entity.

For example, Company A + Company B = Company C

Company A and Company B ceases to exist.

For consolidation to take place, the following has to occur :

1. Approval by the board of directors of each corporation.

2. Provision for an appraisal buyout of dissenting shareholders.

3. An affirmative vote by the holders of a majority of each corporation’s voting shares. 

Dissenting shareholders do not receive voting stocks.

I hope my answer helps you.

5 0
3 years ago
When doing business in _____, it is important to understand that potential customers want to develop a personal relationship bef
MA_775_DIABLO [31]

Answer: Latin america

Explanation: The following case relates to international management activities. The business and management styles of the organisations changes with the change in the culture of the country in which the business is to be done.

In Latin america, the word of mouth is considered to be more important than the paper contracts. The firms around the coutry wants to ensure that the other party is reliable. The dinner is the country usually happens late in 9AM  and discussions is don on the dinner.

Hence from the above we can conclude that the correct answer is latin america.

3 0
3 years ago
An employee is able to receive health insurance from a former employer after changing jobs. What best describes the legislation
Firdavs [7]

Answer:

Health Insurance Portability and Accountability Act (HIPAA).

Explanation:

An employee is able to receive health insurance from a former employer after changing jobs because of the Health Insurance Portability and Accountability Act (HIPAA).

The Health Insurance Portability and Accountability Act (HIPAA) of 1996 was a bill enacted by the 104th U.S Congress and was signed in 1996 by President Bill Clinton. It is a federal law that protects sensitive patient health information from being disclosed without their knowledge, approval or consent and payment of health care insurance for employees.

7 0
3 years ago
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