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Debora [2.8K]
2 years ago
15

The HIJ bond has a current price of $800, a maturity value of $1,000, and matures in 5 years. If interest is paid semi-annually

and the bond is priced to yield 8%, what is the bond's annual coupon rate
Business
1 answer:
yKpoI14uk [10]2 years ago
8 0

Answer:

Explanation:

The coupon rate is defined as the interest rate paid on a bond by its issuer for the term of the security.

Hence,

Par Value = $800

Face Value = $1,000

N = 5 x 2 = 10

Since the interest is semi annual

i = 8% / 2 = 4%

CF = $15.34

Coupon = $30.68 per year or 3.068%

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PRESENT VALUE OF AN ANNUITY Find the present values of these ordinary annuities. Discounting occurs once a year. 1. $600 per yea
NikAS [45]

Answer:

    ordinary   // annnuity-due

1.- 4,521.65   //  4,883.38

2.- 1,572.64  //  1,635.54

4.- 3,000.00 //  3,000

Explanation:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 600.00

time 12

rate 0.08

600 \times \frac{1-(1+0.08)^{-12} }{0.08} = PV\\

PV $4,521.6468

Annuity-due

600 \times \frac{1-(1+0.08)^{-12} }{0.08}(1+0.08) = PV\\

PV $4,883.3786

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 300.00

time 6

rate 0.04

300 \times \frac{1-(1+0.04)^{-6} }{0.04} = PV\\

PV $1,572.6411

Annuity-due

1,572.6411 x 1.04 = $1,635.5467

4.- as interest rate is 0% the money do not lose value over time

will be 3,000 regardless of time or type of annuity

4 0
2 years ago
During sales at her accessories store, Manila likes to display large signs in the store window to attract customers. She also pu
Bess [88]

Answer: The use of promotional signage

Explanation:

A promotional signage is a method of advertisement where special offers are displayed at strategic points by a business to the public to attract customers to patronize the business. Manila in her is making use of promotional signage to draw the attention of potential buyers to her store.

4 0
1 year ago
Read 2 more answers
You need to write a sales message for your company’s new line of exercise apparel. Before composing your message, which question
Alja [10]

Answer: The correct answers are:

- How and where is the apparel manufactured?

- What is the purpose of my message?

- How does the apparel’s durability compare to that of competitors’ products?

Explanation: For an effective sales message it is essential to use persuasion to get the message to the minds of potential customers, so these are some of the questions that should be asked before writing a sales message.

7 0
1 year ago
Jack and diane each buy pizza and paperback novels. pizza costs $3 per slice, and paperback novels cost $5 each. jack has a budg
gregori [183]

The correct answer is Jack.

The total cost of 5 slices of pizza and 3 paperback novels is calculated by this formula:

(5 x $3) + (3 x $5)=

$15 + $15 = $30

Since Jack has a budget of $30 and Diane has a budget of $15, only Jack can afford 5 slices of pizza and 3 novels.

7 0
2 years ago
For a Marketing course: What skills from this course would you use to create a three-paragraph promotional tool that explains th
love history [14]

Answer:

After taking a Marketing Course, I should be armed with the following promotional skills:

  1. Innovation Skills: It is expected that a marketing professional should be able to think differently, energise creativity in  the business and craft maverick ways of gaining the attention of the market and transform that attention to patronage.
  2. Market Development Skills: One is also expected to gain the ability to identify and articulate latent  customer needs (even before the customers become aware of them), spot socioeconomic  trends as well as technological  developments which create opportunities for the company as well as for the customer.
  3. Pricing Technology: Pricing is an art and a science. It involves accounting, economics and psychology. Marketing deals with the economics and psychology bit of it. Armed with this information, one is able to get into the mind of the individual buyers and them to firm up their buying decision.

Cheers!

3 0
2 years ago
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