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
snow_tiger [21]
3 years ago
15

Suppose we have a bond issue currently outstanding that has 20 years left to maturity. The coupon rate is 8% And coupons are pai

d semiannually. The bond is currently selling for $828 per $1,000 bond. What is the cost of debt?
a. 8%
b. 9%
c. 10%
d. 11%
e. 12%
Business
1 answer:
cluponka [151]3 years ago
3 0

Answer:

c. 10%

Explanation:

The Yield to Maturity(YTM) of the Bond is the cost of the debt. So, we need to find the YTM first.

Here i will use a Financial Calculator to enter and compute the YTM as follows :

N = 20× 2 = 40

PMT = ($1,000 × 8%) ÷ 2 = $40

PV = $828

P/YR = 2

FV = 1,000

I or YTM = ?

Thus the cost of the Bond is 10%

You might be interested in
Why does the US import so much from china?
Zinaida [17]

Answer

almost all factors are in china

Explanation:

7 0
2 years ago
Read 2 more answers
Crane Company purchases a patent for $161,900 on January 2, 2022. Its estimated useful life is 5 years. (a) Prepare the journal
ArbitrLikvidat [17]

Answer:

Explanation:

The journal entry is shown below:

Amortization expense - Patent A/c Dr $32,380

     To Patent A/c $32,380

(Being amortization expense for the first year is recorded)

The computation is shown below"

= Purchase cost of patent ÷ estimated useful life

= $161,900 ÷ 5 years

= $32,380

For the intangible assets, the amortization expense is considered, not the depreciation expense and the same is to be taken.  

8 0
3 years ago
Help plz <br>What is persuassive writing?<br>​
Alex17521 [72]

Answer: something to like negotiate someone to do something and give good reasoning

Explanation: for example, someone would want to dye their hair and they would write a letter to their mom saying why their mom should let them dye their hair

3 0
3 years ago
Match each scenario with its effect on the PPC.
NARA [144]
<span>- A manufacturing unit uses all its resources efficiently. </span>A point on the original PPC<span>

- Andrew has 5 hours to complete his homework but uses only 3 hours, so he doesn’t complete it. T</span><span>he PPC shifts to the left
</span><span>
- A country acquires part of its neighboring country. T</span>he PPC shifts to the right
5 0
3 years ago
5. Ren Inc. has expected earnings before interest and taxes of $63,300, an unlevered cost of capital of 14.7 percent, and a comb
laila [671]

Answer:

$334,101.43

Explanation:

The computation of the value of this company is shown below:

Value of unlevered firm= [$63,300 × (1 - 23%)] ÷ 14.7%

= $331,571.43

And,

Value of this company = 331,571.43 + 23% of $11,000

= $331,571.43 + $2,530

= $334,101.43

As we know that value of the company is the mix o f levered firm and the unlevered firm according to that we done the calculations

5 0
3 years ago
Other questions:
  • The fed buys $5 billion worth of treasury bonds on the open market
    11·1 answer
  • An increase in interest rates should cause level of bussiness investment spending to
    11·1 answer
  • Trent is having trouble answering some of the questions the interviewer is asking him. Trent could have prevented this by:
    9·1 answer
  • Sellers of a good bear the larger share of the tax burden when a tax is placed on a product for which the (i) supply is more ela
    8·1 answer
  • The manager of East India Ice Cream Shop keeps track of the number of customers served at different periods of the day in an att
    13·1 answer
  • sammy worked 40 hours per week as a stock person and earned a gross income of $370,what is his hourly wage
    5·1 answer
  • A firm is considering changing their credit terms. It is estimated that this change would result in sales increasing by $1,600,0
    10·1 answer
  • _______ is a political strategy for managers to exercise power unobtrusively. Controlling uncertainty Being irreplaceable Genera
    7·1 answer
  • Suppose Cho comes into a large sum of money and decides to lend it out to
    5·1 answer
  • In the 2016 election cycle, campaigns were expected spent over $4 billion on television advertisements. how effective, generally
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!