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
Katena32 [7]
3 years ago
14

A General Power bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 7%. (Assume an

nual interest payments.) (LO6-1 and LO6-2) a. What interest payments do bondholders receive each year
Business
1 answer:
Mamont248 [21]3 years ago
8 0

Answer:

bondholders will receive 8% of $1,000 = $80

Explanation:

The price of the bond varies depending on the yield to maturity, resulting in higher or lower gains for bondholders, but the actual cash amount received will always be equal to the coupon rate.

The same applies to the issuer of the bond, it may receive more or less money depending on the market rate, which increases or decreases interest expense, but the amount of money paid is always the coupon rate.

You might be interested in
A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's
Ronch [10]

Answer:

0.1333

Explanation:

Given that,

Selling price = $5

Variable cost = $3

Annual sales = $20,000

Total sales = $60,000

Contribution margin:

= Selling price - Variable cost

= $5 - $3

= $2

Number of units sold:

= Annual sales ÷ Selling price

= $20,000 ÷ $5

= 4,000 units

Total contribution sales:

= Number of units sold × Contribution margin per unit

= 4,000 units × $2

= $8,000

Weighted contribution:

= Total contribution sales ÷ Total sales

= $8,000 ÷ $60,000

= 0.1333

6 0
2 years ago
The following are the account balances in the ledger of Metcaffe Manufacturing Company compiled at the end of fiscal-year 6/31/2
Marina86 [1]

Answer:

tanong mo sa crush mo joooook

5 0
2 years ago
How to hack uchannel app unlimited coins in uchannel​
wariber [46]

Answer:

channel it and make it limited

8 0
3 years ago
For the past six years, the stock price of Slippery Rock Mining has been increasing at a rate of 7.3 percent per year. Currently
wel

Answer: 2.2%

Explanation:

The dividend yield base on the information given in the question will be calculated as the difference between the required return on the stock and the growth rate. This will be:

= 9.5% - 7.3%

= 2.2%

Therefore, the dividend yield is 2.2%.

6 0
3 years ago
Bellingham Company produces a product that requires 6 standard pounds per unit. The standard price is $3 per pound. If 4,800 uni
kumpel [21]

Answer:

Results are below.

Explanation:

<u>To calculate the direct material price and quantity variance, we need to use the following formulas:</u>

<u></u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (3 - 2.88)*29,700

Direct material price variance= $3,564 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (6*4,800 - 29,700)*3

Direct material quantity variance= (28,800 - 29,700)*3

Direct material quantity variance= $2,700 unfavorable

<u>Now, the total direct material variation:</u>

total direct material variation= 3,564 - 2,700

total direct material variation= $864 favorable

7 0
2 years ago
Other questions:
  • A bond portfolio and a stock portfolio both provided an unrealized pretax return of 8% to a taxable investor. If the stocks paid
    15·1 answer
  • If a competitive firm cannot earn a profit at any level of output during a given shortminusrun ​period, then which of the follow
    7·1 answer
  • "A customer contributed $50,000 to a variable annuity contract. The account value has grown over the years and the NAV is now $7
    9·1 answer
  • List one method for accepting a job offer and one method for rejecting a job offer.
    15·2 answers
  • how would you predict the survivorship curve of a developed country would compare to that of a developing country
    6·1 answer
  • When was the articles of confederation written
    13·2 answers
  • Pharoah Company had the following two transactions related to its delivery truck. 1. Paid $280 for an oil change. 2. Paid $600 t
    7·1 answer
  • Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess d
    15·1 answer
  • If licensee A representing a party cannot attend a closing and the employing broker B sends another licensee C in his place, whi
    12·1 answer
  • While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals with a long-term inves
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!