1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xenn [34]
2 years ago
13

RAK Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 5.7 percent coupon b

onds on the market that sell for $1,048, have a par value of $1,000, make semiannual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par
Business
1 answer:
Hatshy [7]2 years ago
7 0

Answer:

5.31%

Explanation:

FV = 1000

Coupon rate = 5.7%

No of compound = 2

Interest per period = $28.5

Bond price = $1048

No of years to maturity = 20

No of compounding till maturity = 40

Coupon rate set on new bonds = Rate(Nper, PMT, -PV, FV) * 2

Coupon rate set on new bonds = Rate(40, 28.5, -1048, 1000) * 2

Coupon rate set on new bonds = 0.02655 * 2

Coupon rate set on new bonds = 0.0531

Coupon rate set on new bonds = 5.31%

You might be interested in
Information systems in general are helpful because they are used for making informed decisions using more accurate reports. Howe
lesya692 [45]

Information systems have automated information management, making it quicker to process large amounts of information, but it can also create issues such as information security and IT competitiveness.

Information security is a problem arising from information systems that can configure fraudulent techniques to steal sensitive data from people and organizations and gain benefits, so it is essential to be prepared for the risks and support from specialized security companies.

The advancement of artificial intelligence can also correspond to a risk in the work environment, such as the competitiveness with IT of professionals who are not prepared to deal with digital innovations.

Therefore, it is necessary that organizations use IT to bring benefits in the speed of organizational processes, preparing themselves for risks and offering training and qualification to their employees to deal with digital systems.

Learn more here:

brainly.com/question/13299592

5 0
3 years ago
Kate is analyzing a proposed project to determine how changes in the sales quantity would affect the project's net present value
Fittoniya [83]

Sensitivity analysis. Where one variable is being tweaked a little to see the NPV, that is always sensitivity analysis.

6 0
3 years ago
Economic analysis is used only by policy makers to make policy decisions. only by business people to raise profits. only by inst
Free_Kalibri [48]

Answer:

The correct answer is: in all decision making.

Explanation:

Economic analysis is used in all walks of life, in decision making. It is not only relevant for policymaking or in business or for students. Rather, it is used in day to day life as well.  

Almost all the decision we make is based on cost-benefit analysis. It used by households and individuals for utility maximization. It is used by businesses for profit maximization and is used by policy makers for welfare maximization.

5 0
3 years ago
make a logo for me with the name voice notes it’s a note book that writes when u speak best one gets brainliest
EleoNora [17]

heyyy!    hru? Im super bored

8 0
3 years ago
Khái niệm giao tiếp trong tổ chức
Delvig [45]

Answer:

bu kin jhu

Explanation:

John jvghh bugs HHH jhu UV juggle

6 0
3 years ago
Other questions:
  • The common stock of sweet treats is valued at $10.80 a share. the company increases its dividend by 8 percent annually and expec
    7·1 answer
  • In a credit application, besides one's capacity to pay, creditors also consider which of the following?
    8·1 answer
  • Which research method offers the advantages of high response rates, great flexibility in dealing with respondents, and good cont
    11·1 answer
  • If a company is studying the decision processes and actions of people who purchase and use products, the company is focusing on
    6·1 answer
  • Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15.00
    6·1 answer
  • Masks Inc. is a cosmetics company that makes beauty products. It uses whale oil from dead whales only and does not kill whales t
    7·1 answer
  • Croissants Corporation and Donuts Company transfer their assets to Edibles Inc., which manages the assets and distributes the pr
    10·1 answer
  • Calculate the contribution to total performance from currency, country, and stock selection for the manager in the example below
    14·1 answer
  • Al Dente Pasta Company overstated its inventory by $10 million at the end of 2021. The discovery of this error during 2022, befo
    7·1 answer
  • Why is personal finance dependent upon your behavior?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!