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irinina [24]
4 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]4 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%

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Jerry knows that Lucy has coveted his classic car for quite some time. Finally willing to sell it, he sends a letter to Lucy off
Whitepunk [10]

Answer:

Explanation:

Despite the fact that it seems jerry can easily take a bow of the discussion with Lucy and forge ahead in selling the car to Roberta, he had certain restrictions that he should respect. Accepting $100 from Lucy, Jerry entered into what we know as an “Option” contract, giving an option to Lucy to buy the car in the next two weeks.

Irrespective of Lucy’s financial status, jerry should respect the contract that he has entered into. As a back-up, he can hold discussions with Roberta and can request her to wait for 2 weeks when the option period expires and he can sell the car to her at an outright payment

6 0
3 years ago
Which of the following is likely to require the most education?
ladessa [460]

Answer:

A. Hand packer

Explanation:

Bachelors degree refers to an academic degree (certificate) awarded to a student by a tertiary institution (university or college) after the completion of his or her educational programme.

Additionally, a certification can be defined as a recognition given for completing a course of study or passing an examination. This is to certify that the individual is a professional in that course of study. Some examples are CCNA, Comptia A+, HSE I and II.

A hand packer refers to an individual (employee) who is saddled with the responsibility of packing and/or packaging varieties of finished goods (products) in an assembly line.

Basically, hand pickers are employed to pick and package finished goods into their respective containers so as to get them ready for distribution to the consumers.

Hence, hand packer is most likely to require the most education when compared with a warehouse stocker, curator, and restaurant dishwasher.

7 0
3 years ago
Read 2 more answers
Businesses often hire employees from the community in which they are located.
Darya [45]
True hope this helps!! (:
7 0
3 years ago
Read 2 more answers
Fabio makes a living by farming near Gastric Combustibles, Inc., which has discharged pollutants into the area's air and water.
just olya [345]

Answer:

if they are the core of the local economy

Explanation:

Based on the information provided within the question it can be said that the court is most likely to rule in Gastric's favor if they are the core of the local economy. If this were to be the case, then bringing an injunction against Gastric Combustibles may hurt the local economy and cause instability due to job loss and other factors. Therefore in this scenario the court would all but certainly rule in Gastric's favor.

4 0
3 years ago
What is the effective annual yield of 6% compounded semi-annually? Answer in the percent format. Round to the nearest hundredth
Studentka2010 [4]

Answer:

effective annual yield = 6.09

Explanation:

given data

rate r = 6%

compounded semi-annually

solution

we get here effective annual yield that is express as

effective annual yield = (1+\frac{r}{n} )^n - 1   ..................1

here n is 2 for semi-annually

put here value and we get

effective annual yield = (1+\frac{0.06}{2} )^2 - 1

effective annual yield = 0.0609

effective annual yield = 6.09 %

effective annual yield = 6.09

7 0
4 years ago
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