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
quester [9]
3 years ago
7

A 25-year, annual coupon bond is priced at $1,105.63. The bond has a $1,000 face value and a yield to maturity of 7.28 percent.

What is the coupon rate?
Business
1 answer:
Hunter-Best [27]3 years ago
8 0

Answer:

8.21%

Explanation:

The computation of the coupon rate is given below:

But before that PMT would be determined

Given that

NPER 25

RATE 7.28%

PV $1,105.63

FV $1,000

The formula is shown below:

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

The present value comes in negative

After applying the above formula, the PMT is $82.09

Now the coupon rate is

= $82.09 ÷ $1,000

= 8.21%

You might be interested in
A tourist traveling across Germany, Austria, France, and Spain would need how many different types of currency on her trip?
kolezko [41]
A tourist traveling across Germany, Austria, France, and Spain would need to know only one type of currency on her trip. The correct answer is 1 the Euro. 
5 0
4 years ago
Presented below are two independent situations. a. George Gershwin Co. sold $2,000,000 of 10%, 10-year bonds at 104 on January 1
andreev551 [17]

Answer:

(a) Bond cost 2000000

Bond discount 10%

Bond years 10

Bond yield 4%

Interest (Jan-June) 100000

Less: Premium Amortisation (4000) (2000000*0.04)/10 *6/12

Interest expense 96000

(b) Bond cost 562500

Bond discount 9%

Bond years 10

Bond yield 10%

Interest (June 30-Oct 30) - ((1.10)^4/12) - 1=3.228%

Interest expense= 562500*3.228% =18157.5

6 0
4 years ago
Read 2 more answers
Suppose that when the price of a good falls from $12 to $9, the quantity demanded of that good rises from 310 units to 350 units
Snowcat [4.5K]

Answer:

The approximate price elasticity of demand between these two prices is

- 0.42

Explanation:

In this question ,we use the formula of price elasticity of demand which is shown below:

Price elasticity of demand = Percentage change in quantity demanded ÷ Percentage change in price

where,

Percentage change in quantity demanded is calculated by

= New Quantity - Old quantity ÷ New Quantity + Old quantity

= 350 - 310 ÷ 350 + 310

= 40 ÷ 660

= 0.06060

Percentage change in price is calculated by

= New price - Old price ÷ New price + Old price

= 9 - 12  ÷ 9 + 12

= - 3 ÷ 21

= - 0.14285

Now put these values over the above formula

So, the answer is = 0.06060 ÷  - 0.14285 = - 0.42

Hence, the approximate price elasticity of demand between these two prices is - 0.42

3 0
4 years ago
A key determinant of the price elasticity of supply is the
alina1380 [7]

Answer:

The ability of sellers to change the amount of the good they produce.

Explanation:

Price elasticity of supply: It is an economic measure to check the responsiveness of quantity supplied to the change of price. As per the law of supply, the supply of quantity increases with the increase in the price of goods and services and vice versa. The numerical value of elasticity indicates how is the response of quantity supplied to the price of the product. As zero indicates no response to the change in price and 1 indicate a higher response to the price of the product.

The key determinant of the price elasticity of supply is how well the seller is able to change the quantity supplied as per the price in the market.

8 0
3 years ago
​brown's, a local​ bakery, is worried about increased costs particularly energy. last​ year's records can provide a fairly good
Marina86 [1]

Answer:

Increase in the production of energy means that the energy was saved

Labor productivity also increased

Explanation:

Change in energy producton

Previous Year: (1,500x12)/3,000

=18,000/3,000

=6.0 loaves per unit

Current Year: (1500*12)/2,750

=18,000/2,750

=6.55 loaves per unit

The above calculation indicates a positive change in energy production. This means that there was some degree of energy saving.

Change in labor

Previous Year:  (1500x12)/350

=18,000/350

= 51.43 loaves/labor hour

This Year: (1500x12)/325

= 18,000/325

= 55.38 loaves/labor hour

This calculation also signifies an increase in labor productivity.

Change in Investment

Previous Year:  (1500x12)/15000

=18,000/15,000

= 1.2 loaves/$ investment

This Year : (1500x12)/18000

=18,000/18,000

= 1.0 loaves/$ investment

Investment is lowered which is a positive sign.

4 0
4 years ago
Other questions:
  • Delaware Corp. prepared a master budget that included $18,225 for direct materials, $28,800 for direct labor, $15,400 for variab
    9·1 answer
  • Presented below is information related to Concord Company. Date Ending Inventory (End-of-Year Prices) Price Index December 31, 2
    9·1 answer
  • Henry's boss, Jacob, tells Henry that because he has been such a valuable employee, he will receive an extra week of vacation. W
    13·1 answer
  • During engine operation, the total distance that a valve opens is called the A. rise. B. stroke. C. duration. D. lift.
    8·2 answers
  • Provide an example of one company that should employ the simple structure organizational configuration.
    8·1 answer
  • True or false?
    10·1 answer
  • A broker-dealer who acted as financial advisor to a municipality in structuring a new issue now wishes to act as underwriter in
    15·2 answers
  • Assume that the pre-worker production function is yt = 2kt^0.5. The saving and depreciation rete retes are estimated at 0.2 and
    10·2 answers
  • It is best to——— before making a Decision?
    13·1 answer
  • A business has a key person insurance policy. Who or what would be the beneficiary of the policy ? A. The children of the key pe
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!