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
Harman [31]
3 years ago
9

Gabriele Enterprises has bonds on the market making annual payments, with nine years to maturity, a par value of $1,000, and sel

ling for $978. At this price, the bonds yield 7.4 percent. What must the coupon rate be on the bonds
Business
1 answer:
Kazeer [188]3 years ago
7 0

Answer:

7.06%

Explanation:

The computation of the coupon rate is given below:

Given that

FV is $1,000

PV is $978

NPER is 9

RATE is 7.4%

The formula is given below:

=PMT(RATE,NPER,-PV,FV,TYPE)

After applying the above formula, the PMT is $70.57

Now the coupon rate is

= $70.57 ÷ $1,000

= 7.06%

You might be interested in
A 3/1 ARM is made for $150,000 at 7% with a 30 year maturity. Assuming that fixed payments are to be made monthly for three year
sveticcg [70]

Answer:

Monthly paymenty for  $ 997.954

Explanation:

We have to calcualte for the PTM of the mortgage for the first three years at which the rate is fixed:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV $150,000

time 360 (30 years x 12 months)

rate 0.005833333 (7% annual / 12 months)

150000 \div \frac{1-(1+0.005833)^{-360} }{0.005833} = C\\

C  $ 997.954

8 0
3 years ago
On January 1, 2018, an investor company acquired 30% of an investee company’s common stock for $600,000. As a result of this tra
djverab [1.8K]

Answer:

$642,000

Explanation:

the journal entries required to record these transactions under the equity method are:

January 1, 2018, investment in ABC company

Dr Investment in ABC company 600,000

    Cr cash 600,000

December 31, 2018, dividends received from ABC company

Dr Cash 15,000

    Cr Investment in ABC company 15,000

December 31, 2018, ABC company reports net income

Dr Investment in ABC company 36,000

    Cr Investment revenue 36,000

December 31, 2019, dividends received from ABC company

Dr Cash 15,000

    Cr Investment in ABC company 15,000

December 31, 2019, ABC company reports net income

Dr Investment in ABC company 36,000

    Cr Investment revenue 36,000

The balance of the investment in ABC company account = $600,000 + $36,000 + $36,000 - $15,000 - $15,000 = $642,000

3 0
3 years ago
What can affect whether banks or other financial insututions are
Alchen [17]

Answer:

B. Personal credit if it is a personal loan

D. If the individual applies to start a business

Explanation:

Typically Financial institutions extend loans based on "credit worthiness" (or credit score) of the individual and can be extended based on whether the individual has an asset to secure the loan. Lack of an asset can have a negative result (dependent upon the amount requested) if the loan request is for a large amount of money.

4 0
3 years ago
Read 2 more answers
In developed economics such as the untied states the
damaskus [11]

Answer:

people are trash

Explanation:

7 0
3 years ago
Read 2 more answers
A project to put on a major international sporting competition has the following major deliverables: Sports Venues, Athlete Acco
11Alexandr11 [23.1K]

Answer  & Explanation:

Deliverable I choose is Event.

Answer is explained and draw in attached document.

Hope you like it. :)

Download docx
7 0
3 years ago
Other questions:
  • Does USAMS cable support fast charging?
    13·2 answers
  • Which of the following would likely be covered under homeowners insurance but NOT by renter's insurance? AA fire destroys almost
    15·1 answer
  • The transmission of a capitalist economic system from one generation to the next best illustrates the impact of
    12·2 answers
  • According to business process management, identify the management's next step after developing a vision for the organization.
    12·1 answer
  • Which of the following is NOT a creative thinking exercise entrepreneurs use to generate ideas?
    10·1 answer
  • The McDonald's fast-food restaurant on campus sells an average of 4,000 quarter-pound hamburgers each week. Hamburger patties ar
    7·1 answer
  • Why do we have to pay for brainly? brainly should be a completely free to help children in need with work they dont understand a
    9·2 answers
  • The law of supply relates to opportunity cost because:__________
    14·2 answers
  • There were initially two satellite radio providers in the U.S. market, Sirius and XM Radio. The firms merged to form one firm, a
    5·1 answer
  • Through effective ______, people can successfully resolve conflicts and create positive change. problem-solving strategies manag
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!