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
irinina [24]
3 years ago
12

AB Builders, Inc., has 16-year bonds outstanding with a par value of $2,000 and a quoted price of 99.727. The bonds pay interest

semiannually and have a yield to maturity of 6.56 percent. What is the coupon rate
Business
1 answer:
galben [10]3 years ago
6 0

Answer:

6.54%

Explanation:

Face Value = $2,000

Current Price = 2000 x 99.727% =  1994.54

YTM = 6.56%

We can find the coupon rate by a simple formula

Coupon Rate = (Interest / Face value) x 100

We need to find interest first in order to find coupon rate

YTM = Interest / Current price

6.56% x 1994.54 = Interest

130.84 = Interest

Coupon Rate = (130.84 / 2000) x 100

Coupon Rate = 6.54%

You might be interested in
Managerial accounting differs from financial accounting in several areas. Specify whether each of the following characteristics
ANTONII [103]

Answer:

A is not Managerial accounting the correct answer is  Financial accounting

8 0
3 years ago
What is good about having a credit card? what is bad?​
navik [9.2K]

Answer:

Credit cards are neither good nor bad. They are financial tools that must be used with care. Cards can help or hurt your finances if you don't use them responsibly.  At the same time, credit cards used properly offer a convenient payment method that can build credit and earn rewards for users.

Explanation:

7 0
2 years ago
Which of the following statements about the expected postretirement benefit obligation (EPBO) is not correct? a. The EPBO is rec
mixer [17]

Answer:

The correct answer is letter "A": The EPBO is recorded in the accounts.

Explanation:

The Expected Postretirement Obligation (EPBO) is an estimation of the value of the benefits employees will receive upon retirement including all the time workers remained in the firm. This is merely a calculation and is not subject to any type of transaction to be recorded in the company's books. The EPBO is not related to workers' pensions.

6 0
3 years ago
Juan buys gas at the gas station. The gas station submits funds for road maintenance. What type of tax is this? (5 points)
prisoha [69]

Answer:

Indirect taxes

Explanation:

Indirect taxes are the taxes levied on transactions as opposed to direct taxes that are imposed on incomes. An indirect tax is added to the prices of goods and services and collected by the seller or retailer. The retailer acts as the tax intermediary and submits the taxes collected to the government.

Examples of Indirect taxes include excise duty tax, value-added tax, and sales tax.  Gas attracts sales tax and road maintenance tax. These taxes increase the price of gas, making them indirect taxes.

6 0
2 years ago
Buying a new building increases business <br><br> Land/capital
Marysya12 [62]

Answer:

land

Explanation:

why because buying a capital we'll be to much

8 0
2 years ago
Read 2 more answers
Other questions:
  • Whats the process of Observing someone actually working in a career that interest you?
    5·1 answer
  • Jake and janelle loved to prepare gourmet meals for friends and family. they started a business of preparing theme type dinners
    8·1 answer
  • Whose responsibility is it to identify credit report errors?
    13·1 answer
  • When you finance a project partly with debt, you should still view the project as if it were all equity-financed, treating all c
    14·2 answers
  • What makes government contracts unique?
    14·2 answers
  • purchased inventory for $ 4 comma 500 and also paid a $ 290 freight bill. Corner Market returned 40​% of the goods to the seller
    5·1 answer
  • A Mission Statement gives guidance the portfolio of programs and projects in an organization. Project managers should be able to
    14·1 answer
  • According to the eTextbook, in the world of sustainability, the triple bottom line refers to an organization that makes decision
    10·1 answer
  • If you have a long position in a foreign currency, you can hedge with:_____.
    13·1 answer
  • Suppose at an output level of 150 units a firm's average fixed cost is $25 and average variable cost is $50. Then the average to
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!