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
stepan [7]
3 years ago
6

A $10,000 face value Treasury bond is quoted at a price of 101.6533 with a current yield of 4.87 percent. What is the coupon rat

e?
A) 5.20 percent
B) 4.48 percent
C) 5.41 percent
D) 4.95 percent
E) 4.27 percent
Business
1 answer:
musickatia [10]3 years ago
4 0

Answer:

D) 4.95 percent

Explanation:

The current yield formula can be used to determine the coupon payment which would thereafter be used to compute coupon rate as required:

current yield=coupon payment/current market price

current yield=4.87%

coupon payment=unknown

current market price=101.6533%*$10,000

current market price=$10,165.33  

4.87%=coupon payment/$10,165.33  

coupon payment=$10,165.33 *4.87%

coupon payment=$495.051571

coupon rate=coupon payment/face value

coupon rate=$495.051571 /$10,000

coupon rate=4.95%

You might be interested in
Beth needs a new roof. She finds Clancy, a roofing contractor, through an ad he posted in the local newspaper. Clancy paid $60 t
BARSIC [14]

Answer:

The transaction costs associated with this exchange are $155

Explanation:

The computation of the transaction cost which is associated with this exchange is shown below:

= Ad charges in the newspaper + law firm write up charges

= $60 + $95

= $155

It includes various cost like - transportation cost, legal fees, communication charges, etc.

The installation of Beth's new roof is not considered in the computation part because it is not an exchange transaction cost. So, this cost is ignored.

6 0
3 years ago
Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gather
Lostsunrise [7]

Answer:

$32,000

Explanation:

Net advantage = Annual operating cost

Net advantage = [(Old machine - New machine)*10 life] - New machine cost + Old machine cost

Net advantage = [($320000 - $240000)*10] - $800000 + $32000

Net advantage = [($80000)*10 - $768,000

Net advantage = $800,000 - $768,000

Net advantage = $32,000

So, the net advantage of replacing the old machine is $32,000

4 0
3 years ago
Moral hazard is a situation when a. contract terms attract parties that have a higher preference for risk b. contract terms ince
monitta

Answer:

contract terms incentivize one party to take on more risk because they don't carry the full cost of the risk

Explanation:

A moral hazard can be understood as the concept that a participant that is sheltered from danger in some manner will behave significantly than if they were not.

Every day, we see moral hazard in the form of established academics who remain apathetic presenters, individuals who have burglary insurance who are less attentive about where they parked, compensated workers who take long vacations, and etc.

Thus, from the above we can conclude that the correct option is C.

5 0
3 years ago
Vicky keeps a close eye on her company’s internal and external environment to discover possible opportunities for new products a
ddd [48]

Vicky keeps a close eye on her company’s internal and external environment to discover possible opportunities for new products and to discern possible threats from the competition. Vicky is engaged in SWOT analysis.

All the bodily environments on the planet are known as the surroundings. The environment includes the entirety living and everything nonliving. The nonliving part of the surroundings has three essential parts: the surroundings, the hydrosphere, and the lithosphere.

Surroundings especially include ecosystems, hydrosphere, lithosphere, and biosphere. However, it may be more or less divided into two types which include (a) Microenvironment and (b) Macro surroundings. it may also be divided into other sorts inclusive of (c) physical and (d) Biotic surroundings.

Learn more about environment here:brainly.com/question/17413226
#SPJ4

6 0
2 years ago
A description of how the business will generate revenue is always included in a:
GarryVolchara [31]

Answer: business plan

Explanation:

Stock dividend, is a method used to distribute wealth to its shareholders by a company.

A stock certificate is a legal document which implies that the owner has some number of stocks or shares in a corporation.

Business loan agreement is simply an understanding that takes place between a business and a lender which contains the promises made by both parties regarding giving the money by the lender and the repayment plan by the borrower.

A business plan is a document that simply describes a business and, its products or services, its financing, leadership and staffing, its operations model, etc.

6 0
3 years ago
Other questions:
  • An elected official is
    5·2 answers
  • Laurel loves his job. It offers him the opportunity to meet lots of people, to work outdoors, and to do things his own way. Laur
    13·1 answer
  • Marie is a small-business owner who loves to take risks. She also enjoys going out and meeting customers and potential clients—t
    6·1 answer
  • Pharoah Company purchased a new machine on October 1, 2019, at a cost of $138,000. The company estimated that the machine will h
    13·1 answer
  • 4. AirCar LLC, a producer of consumer electronics, had provided its employees an annual bonus. After a change in management, the
    5·1 answer
  • Vermicelli Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 5% per mont
    9·1 answer
  • one feature of a corporation is that it can continue indefinitely beyond the lives of individual managers and stockholders of th
    7·1 answer
  • Stephanie Robbins is attempting to perform an inventory analysis on one of her most popular products. Annual demand for this pro
    10·1 answer
  • Define ''limited in stock''
    6·1 answer
  • Discounted cash flow methods consider the present value of the cash flows after the recovery of the initial investment. quizlet
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!