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
Sonbull [250]
3 years ago
6

A 15-year, annual coupon bond is priced at $984.56. The bond has a $1,000 face value and a yield to maturity of 6.5 percent. Wha

t is the coupon rate
Business
1 answer:
Bess [88]3 years ago
3 0

Answer:

6.35%

Explanation:

you can use the yield to maturity formula to determine the coupon:

YTM = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]

0.065 = {coupon + [(1,000 - 984.56) / 15]} / [(1,000 + 984.56) / 2]

0.065 = {coupon + 1.029} / 992.28

64.4982 = coupon + 1.029

coupon = 63.47

coupon rate = 63.47 / 1,000 = 0.06347 = 6.35%

You might be interested in
How many of the following events would require an expense to be recorded? Ordering office supplies Hiring a receptionist Paying
Marat540 [252]

Answer:

C)Two.

Paying employees' salaries for the current month

Receiving but not paying a current utility bill.

Explanation:

When salaries are played to employees, an entry is recorded in Salary Expense account.

In accrual accounting when utility bill is received it is recognised in the books even when payment has not been made. Because it is a current utility bill it has to be recorded in this period.

7 0
3 years ago
Compare and contrast anticipatory and response-based business models. Why has responsiveness become popular in supply chain coll
Anon25 [30]

Answer:

Forecast and planning

Explanation:

An anticipatory model is a model under which market forecast determines the production of products by the manufacturer, and purchases by retailers also determined by forecasts and promotional plans. Since the forecasts are wrong most of the times, anticipatory model usually leads to differences in the actual production of the firms and what they initially planned to produce.  

Anticipatory Model is a risky model because anticipation of future events always determines the work to do by the firm.

On the contrary, the Responsive Business Model does not depend on forecasts, but ensure that what to be done are adequately planned and information among firms in the supply chain are properly exchanged. This makes the model not to be risky and ensure doing more than what has already been planned is avoided. Therefore, the aim of the responsive model which also known as Pull Model is to eliminate reliance on forecast.  

The major reason the Responsive Model has become popular in supply chain collaborations is that it allows for the customization of products on smaller orders by customers.  However, the Anticipatory Model does not give customers any choice or power but to buy or not buy.

4 0
3 years ago
A student who receives a Direct Stafford Loan must complete the _____, in which he or she promises to repay the loan.
icang [17]
I think it's D


I hope it helped you!
7 0
3 years ago
Read 2 more answers
Gabriel Farms, one of The Fruit Guys’ vendors, believes in paying its employees a "living wage," which is higher than a typical
Nookie1986 [14]

Answer:

The correct option is A,safety needs

Explanation:

The fact that Gabriel Farms pays a living wage that is higher than minimum wage shows that the employer is not only interested in ensuring employees satisfy their psychological needs by having access to basic necessities alone.

In other words, by paying them something extra they are placed in the safety needs hierarchy where they are also able to look after personal security,comfort,good health as well as acquisition of property.As result,there is no doubt that the living wage satisfies the safety needs' hierarchy in Abraham Maslow's hierarchy of needs

6 0
3 years ago
A stock has an expected return of 11.1 percent, its beta is .86, and the risk-free rate is 5.55 percent. What must the expected
mylen [45]

Answer:

12%

Explanation:

The computation of the expected return on the market is shown below:

As we know that

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

11.1% = 5.55% + 0.86 × (Market rate of return - 5.55%)

So, the market rate of return is

= (11.1% - 5.55%) ÷ 0.86 + 5.55%

= 12%

Also , The Market rate of return - Risk-free rate of return) is also known as the market risk premium

5 0
3 years ago
Other questions:
  • A firm has a capital structure with $7 in equity and $1 of debt. The cost of equity capital is 0.16 and the pretax cost of debt
    9·1 answer
  • Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested mar
    8·1 answer
  • Item 2 item 2 companies such as maybelline often use _____ advertising to convince consumers to take action such as switching br
    6·1 answer
  • A decline in the Index of Supplier Deliveries is typically an indicator of a future _____ in economic production, and a narrowin
    7·1 answer
  • You are considering investing money in Treasury bills and wondering what the real​ risk-free rate of interest is.​ Currently, Tr
    8·1 answer
  • The tax on a property with an assessed value of $ 68 comma 000 is $ 550. Using a​ proportion, find the tax on a property with an
    9·1 answer
  • Mrs. Torres goes out of town on a business trip. She spends 3 nights in a hotel at a charge of $80 per night. She pays 9% tax on
    6·2 answers
  • A lawyer cannot represent both the plaintiff and the defendant because of
    10·1 answer
  • Major retail firms such as Walmart have used data mining to customize the product offerings for each store.
    10·2 answers
  • When a manager deciding how to most fairly identify internal candidates for a promotion she is making a __________.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!