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Iteru [2.4K]
3 years ago
15

Treasury bonds paying an 10.00% coupon rate with semiannual payments currently sell at par value. What coupon rate would they ha

ve to pay in order to sell at par if they paid their coupons annually?
Business
1 answer:
andrezito [222]3 years ago
3 0

Answer:

10.25%

Explanation:

The requirement which is Coupon rate can be calculated using EAR formula.

EAR = (1 + APR/n)^n - 1

EAR = (1 + 10.00%/2)^2 - 1

EAR = (1 + 0.1/2)^2 - 1

EAR = (1 + 0.05)^2 - 1

EAR = (1.05)^2 - 1

EAR = 1.1025 - 1

EAR = 0.1025

EAR = 10.25%

10.25% is the coupon rate for annually paying bond.

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hiller Corporation has the following sales forecasts for the selected three-month period in 2018: Month Sales July $24,000 Augus
IrinaK [193]

Answer:

$15,400

Explanation:

Given

70% of sales are collected in the month of the sale, and the remainder are collected in the following month.

Considering the month of July with Accounts receivable balance (July 1, 2018) $20,000

Sales = $24,000

Cash collected = 20000 + (70% × 24000)

                         = 20000 + 16800

                         = $36,800

Account receivable balance (1 August, 2018)

= 30% × 24000

= $7,200

For the month of August

Sales = $14,000

Cash collected = 7200 + (70% × 14000)

                         = 7200 + 9800

                         = $17,000

Account receivable balance (1 September, 2018)

= 30% × 14000

= $4,200

For the month of September,

Sales = $16,000

Cash collected = 4200 + (70% × 16000)

                         = 4200 + 11200

                         = $15,400

The total cash collected from Sales which is made of 30% from the previous month's sales and 70% of September sales is $15,400

6 0
3 years ago
What is the American opportunity credit for 2018
DaniilM [7]
<span>The American Opportunity Credit is a tax credit that is offered on education expenses for eligible students that qualify. It is only applicable in the first four years that a student is attending a type of higher education and the maximum yearly credit caps out at $2500 per student who is eligible.</span>
3 0
3 years ago
Aggregate Demand is everything produced while Simple Demand is one good. Which statement reflects Aggregate Demand?
lys-0071 [83]
Calculating real output
8 0
3 years ago
Compton Company expects the following total sales: Month Sales March $ 20,000 April $ 10,000 May $ 34,000 June $ 15,000 The comp
Shalnov [3]

Answer:

The accounts receivable balance on May 31 is $17850

Explanation:

First we need to determine the amount of credit sales for the month of May. The credit sales for May will be 70% of the total sales for May. Thus, the credit sales for May are,

Credit sales- May = 34000 * 0.7   = $23800

The accounts receivable balance at the end of May will contain the amount due from credit sales that are made in May that are still not collected and will be collected in the next month as per the company's policy.

Accounts receivable at the end of May = 23800 * 0.75 = $17850

8 0
3 years ago
If all resources were perfectly adaptable for alternative uses, the production possibilities curve would:
Svet_ta [14]

Answer:

The correct answer is letter "C": be a straight line.

Explanation:

The Production Possibility Frontier (<em>PPF</em>) aims to determine what the maximum production would be using finite factors. Typically, the higher production of a good implies lowering the production of another. The PPF is represented by a graph with a vertical "X" axis and a horizontal "Y" axis for easiness in understanding.

Thus, if the factors for production were perfectly adaptable, the PPF curve will display a straight line in a graph.

8 0
3 years ago
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