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dezoksy [38]
3 years ago
15

A $1,000 par bond with a semi-annual coupon and 12 years to maturity is currently priced $880 and has a yield to maturity of 5.3

7%. What is the bonds coupon rate
Business
1 answer:
jok3333 [9.3K]3 years ago
5 0

Answer:

Annual Coupon rate = 0.040005 or 4.0005% rounded off to 4.00%

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = C

Total periods (n) = 12 * 2 = 24

r or YTM = 0.0537 * 6/12 = 0.02685 or 2.685%%

The formula to calculate the price of the bonds today is attached.

We will first calculate the value of semi coupon payment  made by the bond.

880 = C * [( 1 - (1+0.02685)^-24) / 0.02685]  + 1000 / (1+0.02685)^24

880 = C * 17.52482779  +  529.4583737

880 -  529.4583737  =  C * 17.52482779

350.5416263 / 17.52482779 = C

C = 20.0025718 rounded off to 20.00

 

The annual coupon payment will be = 20.0025718  * 2 = 40.00514361 rounded off to 40.01

Annual Coupon rate = 40.00514361  / 1000 = 0.040005 or 4.0005% rounded off to 4.00%

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<u>Answer: </u>Option E

<u>Explanation:</u>

Analyzing the audience in informal method is through listening to the community. This is the feedback that Stefan can collect by listening to what the community says. based on this information decisions can be made by the product managers. By listening to the community Stefan can also understand their perspective.

To achieve excellence in business communication it is necessary to have informal communication of listening to community. Through listening important messages and insights can be received from customers, product enthusiasts and people in online discussions.

8 0
3 years ago
Ram Company's after-tax net income was $120. Their interest paid was $50. Assuming the corporate tax is 40%, what is Ram Company
Nataliya [291]

Answer:

5

Explanation:

The formula to compute the interest coverage ratio is shown below:

= (Earning before tax + interest expense) ÷ (interest expense)

where,

Earning before tax equal to

= Net income ÷ (1 - tax rate)

= $120 ÷ (1 - 0.40)

= $200

And interest expense is $50

So, the interest coverage ratio equal to

= ($200 + $50) ÷ ($50)

= 5

4 0
3 years ago
Eviyan recently received a copy of his performance review report. During the review, his manager took notes regarding his perfor
Sladkaya [172]

Answer:

Eviyan's Performance Evaluation Report:

The manager has scheduled him for a meeting for a performance feedback interview.

Explanation:

Performance feedback interview is an opportunity for the employee to meet with his manager in order to iron out issues and reflect on the outcome of the evaluation.  The employee will also be required at the interview to explain and defend the performance result face to face with the manager.  Since there are always some differences in perception and evaluation, the interview provides that needed chance for a detailed discussion so that corrective measures will be defined and agreed upon.  It is a good performance policy to schedule such an interview following a performance evaluation report.

3 0
3 years ago
After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He w
True [87]

Answer:

Part of the labor force and employed

Explanation:

After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered part of the labor force and employed. Although Yunis is not getting anything in return and he is working 25 hours a week but he still will be considered as the part of the labor force and employed because he is working in his own business and the money generated with his services will be coming to his own family, therefore, he will be considered as an employed man.

3 0
3 years ago
Zhang Industries budgets production of 400 units in June and 410 units in July. Each finished unit requires 5 pounds of raw mate
Vika [28.1K]

Answer:

The correct answer is $12,060.

Explanation:

According to the scenario, the given data are as follows:

Production in June = 400 units

Production in July = 410 units

Each unit required = 5 pounds

Cost per pound = $6

So, June required raw material = 400 units × 5 pounds = 2000 pounds

For July required raw material = 410 units × 5 pounds × 20% = 410 pounds

So, required total raw material for June = 2000 pounds + 410 pounds - 400 pounds ( already in inventory)

= 2010 pounds

So, the total cost required for raw material in June = 2010 pounds × $6

= $12,060

Hence, the budgeted cost of purchases for raw material K for June is $12,060.

7 0
3 years ago
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