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Anarel [89]
3 years ago
12

American Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to maturity is 9.25%, t

hey pay interest semiannually, and they sell at a price of $850. What is the bond's nominal coupon interest rate
Business
1 answer:
mezya [45]3 years ago
7 0

Answer:

7.71%

Explanation:

Calculation to determine the bond's nominal coupon interest rate

First step is to determine the PMT using Financial calculator

FV = $1,000

N= 25 × 2 = 50 periods ( semi-annual)

i/y=9.25/2=4.63

PV= - 850

PMT=?

Hence,

PMT=38.55

Second step is to calculate the Annual coupon Payment

Annual coupon Payment =38.55x2

Annual coupon Payement= 77.10

Now let determine the bond's nominal coupon interest rate using this formula

Nominal coupon rate= Annual coupon payment/par value

Let plug in the formula

Nominal coupon rate=77.10/1000

Nominal coupon rate=7.71%

Therefore the bond's nominal coupon interest rate is 7.71%

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Sati [7]

Answer: 42 days

Explanation:

To solve the above question, first, we will have to calculate the debtors turnover ratio which is the date sales uncollected for the year. This will be:

= Sales/Average Accounts Receivables

= $612,000 / $70,422

= 8.69 times

Since we are using 365 days for a year, then the firm's days sales uncollected for the year will be calculated as:

= 365 / 8.69

= 42 days

4 0
3 years ago
1. The types of businesses that can operate in a community are regulated by local
il63 [147K]

Answer:

B. zoning laws.

Explanation:

Zoning laws are regulations put in place by the local authorities that dictate how real estate properties can or cannot be used in different geographical zones. Zoning laws can prohibit or limit properties in certain areas to be used for commercial or industrial purposes. For example, zoning laws may not allow the development of commercial buildings in residential neighborhoods.

Zoning shows whether specific geographic areas are acceptable for commercial purposes.

5 0
3 years ago
Write 2-3 short paragraphs about the marketing message you will use and why you chose this message. Why does it appeal to your t
pochemuha

Explanation:

A marketing message that is highly regarded in today's world, is one that manages to demonstrate business values in the form of procedures, products and services that contain added value in addition to the purely profitable.

As an example that would write a marketing message about a new clothing brand, it would include information that demonstrates that the manufacturing process and raw materials used in making the clothing is sustainable and has a low impact on the environment.

This is a strategy that increases the perception of stakeholders in relation to products, a brand that actually has parameters of sustainability in its processes can demonstrate them through its marketing messages to create value and greater reliability in the brand, being a great differential for consumers.

3 0
3 years ago
Zimway is a small manufacturer of linen. Couture Smart, a big apparel brand buys linen from Zimway in large quantities. Zimway,
harkovskaia [24]

Answer: Buyer dependency

Explanation: Buyer dependency refers to the situation when the supplier of a commodity is heavily dependent on one or two buyers for operating effectively in the market. This situation is common to those organisations that do business to business sales operations.

In the given case, Zimway made a majority of sales to couture and the other buyers purchase from it in small quantities.

Hence, from the above we can conclude that this case illustrates Buyer dependency.

6 0
3 years ago
Northern Illinois Company expects to sell 36,000 units of finished goods over the next 6-month period. The company has 12,000 fi
sp2606 [1]

Answer:

38,000 units

Explanation:

Total production required = Forecasted unit sales + Planned finished goods inventory balance = 36,000 + 14,000 = 50,000 units

Products to be manufactured = Total production required - Beginning finished goods inventory = 50,000 - 12,000 = 38,000 units

The number of finished units to be produced = 38,000 units

So the correct answer will be 38,000

8 0
3 years ago
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