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Ulleksa [173]
4 years ago
5

McConnell Corporation has bonds on the market with 18 years to maturity, a YTM of 9.8 percent, a par value of $1,000, and a curr

ent price of $1,326.50. The bonds make semiannual payments. What must the coupon rate be on these bonds

Business
1 answer:
djyliett [7]4 years ago
4 0

Answer:

13.70%

Explanation:

We use the PMT formula which is to be shown in the attachment

Given that,  

Present value = $1,326.50

Future value = $1,000

Rate of interest = 9.8%  ÷ 2 = 4.9%

NPER = 18 years × 2 = 36 years

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the PMT is

= $68.48  × 2

= $136.92

Now the coupon rate is

= $136.92 ÷ $1,000

= 13.70%

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Answer:

D) publicity to help create a positive image for her firm and its products

Explanation:

Lyla's marketing budget is not very large, so she must find ways to optimize her resources. One way to do this is by getting publicity which generally is free. Publicity refers to getting public attention towards your company or your company's products or services. It creates awareness about your products and it can really influence the opinions of your potential customers. Maybe Lyla can sponsor some public event or competition which is actually much cheaper than mass media advertising and can also be much more effective.

6 0
3 years ago
Hooper Printing, Inc. has a bond issue outstanding with 14 years left to maturity. The bond issue has a 7% annual coupon rate an
lord [1]

Answer:

9.35%

Explanation:

Annual coupon amount = Coupon rate × Fave value of bond = 7% × 1,000 = $70.

Expected current yield = Annual coupon amount ÷ Current market price per bond = $70 ÷ $749.04 = 0.0935, or 9.35%.

Therefore, the expected current yield for the next year on this bond issue is 9.35%.

6 0
3 years ago
Explain the roles of monetary and fiscal policy in causing and ending hyperinflation.
german

Answer:

Explanation:

Hyperinflation occurs when the prices of goods and services increases very rapidly. This situation is stirred up when the federal government in a country prints more money in order to finance their fiscal budget, this leads to increase in price coupled with inflation, this is as a result of increase in the supply of money.

The government is supposed to secure the supply of money in order to reduce inflation instead of printing more money. Consumers that understands what this means anticipates increase in price, this makes them buy more before the eventual increase in price.

Note that during hyperinflation debtors benefits, because their debt becomes worthless due to increase in price.

3 0
4 years ago
According to the video congressional earmarks, the trading of votes by members of congress to obtain passage of projects that ar
sineoko [7]
<span>the trading of votes by members of congress to obtain passage of projects that are of interest to one another is referred to as: Logrolling
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3 years ago
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Answer:

The correct answer is option (b) Little capital

Explanation:

Solution

With a little capital this will help Lily to choose a sole proprietorship organization for her business. a sole proprietorship can begin with a little capital.

The option (a) is not correct as possession of a partner will not lead her to start a sole proprietorship business.

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3 years ago
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