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gizmo_the_mogwai [7]
2 years ago
12

A well-known industrial firm has issued $1,000 bonds that carry a 4% coupon interest rate paid semiannually. The bonds mature 20

years from now, at which time the industrial firm will redeem them from $1,000 plus the terminal semiannual interest payment. From the financial pages of your newspaper you learn that the bonds may be purchased for $715 each ($710 for the bond plus a $5 sales commission). What nominal annual rate of return would you receive if you purchased the bond now and held it to maturity 20 years from now
Business
1 answer:
Flauer [41]2 years ago
8 0

Answer:

5.59%

Explanation:

$1,000 bonds carrying a 4% coupon rate, semiannual coupon $20, matures in 20 years

if you purchase the bonds at $715, the nominal annual rate of return = coupon payments / bond price = ($20 + $20) / $715 = $40 / $715 = 5.59%

The nominal annual rate of return is calculated by dividing the revenue generated by an investment by the cost of the investment.

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Answer:

213 Unfavorable

Explanation:

Given that,

Direct labor-hours used to produce this output = 2,130

Actual variable overhead rate = $6.10 per hour

Variable overhead per hour = $6.00

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= 2,130 × ($6.1 - $6)

= 213 Unfavorable

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1 year ago
an instance where sellers should work to keep relationships with consumers is when they feel that the product
irina1246 [14]
An instance where sellers should work to keep relationships with consumers is when they feel that the product
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bixtya [17]
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3 0
1 year ago
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Ganezh [65]

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3 0
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Answer:

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