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aivan3 [116]
2 years ago
6

Pera Inc. wishes to issue new bonds. These are 5-year bonds with semi-annual interest; $1,000 par value, and a yield to maturity

of 10%. The firm has determined that these bonds would sell for $1,136 each today. What is the coupon rate for these bonds?
Business
1 answer:
Gemiola [76]2 years ago
5 0

Answer:

coupon rate= 13.5%

Explanation:

Giving the following information:

Number of periods= 5*2= 10 semesters

Par value= $1,000

YTM= 0.1/2 = 0.05

Price bond= $1,136

<u>To calculate the coupon rate, first, we need to determine the coupon per semester using the following formula:</u>

Bond Price​= coupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

1,136 = coupon*{[1 - (1.05^-10)] / 0.05} + [1,000/(1.05^10)]

1,136 = coupon*7.722 + 613.91

522.09 = coupon*7.722

$67.61=coupon

<u>Now, the coupon rate:</u>

Coupon= par value*(coupon rate/2)

67.61= 1,000*(coupon rate/2)

67.61= 500coupon rate

0.135=coupon rate

coupon rate= 13.5%

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Goryan [66]

Answer:

Cash provided by operating activities $39,650

Explanation:

The computation of the cash provided by operating activities under the direct method is as follows:

Sales Revenue     $30,600

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2 years ago
Which is not an example of transfer income.
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Answer:

A - dividen

Explanation:

A is the answet

4 0
2 years ago
A price total of $1,500 is subject to a 5% sales tax. What is the amount due after tax? A. $1,625 B. $75 C. $1,750 D. $1,575
zloy xaker [14]
The answer to your question is D
3 0
3 years ago
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What number should be included in the following data so that the median is 5.2? 4,7,11,5,3​
ruslelena [56]

Answer:

5.4

Explanation:

To find the median, we need to arrange the numbers in numerical order.

Hence, here we have 3, 4, 5, 7, 11.

Given that the question says we should look for numbers that would be included in the following data so that the median is 5.2. Hence, we need to add the number to the set.

Therefore the total number of the set will be 6 making it an even number. Hence we have to add the two numbers in the middle and divide them by 2.

Since the median is 5.2, hence we multiply it by 2 = 10.4

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Where 5 + 5.4 = 10.4, then divided by 2 = 5.2 as median.

4 0
3 years ago
You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You e
Lelechka [254]

Answer:

A. $32.08

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7 0
3 years ago
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