Gabriele enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of 1000, and selling for 962. At this price, this price, the bonds yield 6.6 percent.What must the coupon rate be on the bonds?

Answers

Answer 1
Answer:

Answer:

The answer is =5.91%

Explanation:

N(Number of periods) = 7 years

I/Y(Yield to maturity) = 6.6percent

PV(present value or market price) = $962

PMT( coupon payment) = ?

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 7; I/Y = 6.6; PV = -962; FV= $1,000; CPT PMT= $59.05

Therefore, the coupon rate of the bond is of the bond is $59.05/1000

=5.91%


Related Questions

You are the CFO of a publicly-traded company in a very competitive industry. You are preparing the annual report and SEC filings and you are carefully considering how much information to provide. You fear that your competitors could gain some advantage if you present too much detail but you know that investors want more detail so they can evaluate the business (and management) performance. How do you handle these conflicting elements?
On May 1, 2017, Crane Company purchased the copyright to Blue Spruce Corp. for $112800. It is estimated that the copyright will have a useful life of 4 years. The amount of amortization expense recognized for the year 2017 would be:_______. a) $28200 b) $15040 c) $18800. d) $14100.
The situation that requires a departure from the cost basis of accounting to the lower-of- cost-or-net-realizable-value basis in valuing inventory is necessitated by Select one: a. an increase in selling price. b. a decline in the value of the inventory. c. an increase in the value of the inventory. d. a desire for more profit.
On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 235,000 September 1, 2021 $ 342,000 December 31, 2021 $ 342,000 March 31, 2022 $ 342,000 September 30, 2022 $ 235,000 Kendall borrowed $764,000 on a construction loan at 7% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,570,000 in 7% bonds payable outstanding in 2021 and 2022. Average accumulated expenditures for 2021 was:
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $660,000 payroll for 8,600 direct labor-hours. Listed below is cost driver information used in the product-costing system: Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost Driver Level Machine setups $ 310,000 # of setups 310 setups Materials handling 115,800 # of barrels 9,650 barrels Quality control 1,290,000 # of inspections 3,000 inspections Other overhead cost 1,075,000 # of machine hours 21,500 machine hours Total overhead $ 2,790,800 A current product order has the following requirements: Machine setups 28 setups Materials handling 720 barrels Quality inspections 90 inspections Machine hours 1,700 machine hours Direct labor hour 564 hours Using ABC, how much total overhead is assigned to the order?

The purpose of sobriety checkpoints that are set up by community and state police is to deter drunk driving and ultimately save lives.While not mandated,the makers of Blackberry™ have complied with the public request of several legislators and have obediently removed apps that permit smartphone users to navigate around the checkpoints.Google™ and Apple™ have elected not to honor such requests.Google said the apps do not violate the company's content policy.After studying about ethics and social responsibility,which of the following statements applies to this situation? A) Laws represent the minimum guidelines that companies must follow,whereas a firm's ethical stance may venture beyond the minimum level of compliance.
B) Google and Apple are showing corporate social responsibility because they demonstrate concern for their investors,which is exactly where their focus should be.
C) Blackberry is acting philanthropically toward government.
D) Google and Apple are showing their distrust for big government,and their avoidance of contributing toward philanthropic causes.

Answers

Answer:

A) Laws represent the minimum guidelines that companies must follow,whereas a firm's ethical stance may venture beyond the minimum level of compliance.

Explanation:

In the given scenario there are laws that allows community and state police to set up sobriety check points that discourages drunk drivers and saves lives.

The inclusion or removal of applications that helps drunk drivers avoid these checkpoints is not covered by the law. So if a company decides to include such applications it is at their discretion.

Blackberry have chosen to remove applications that helps drunk drivers avoid checkpoints. This is an example of when a company has ventured beyond the minimum level of compliance because of their ethical stance.

Google and Apple however have only ventured beyond the minimum compliance level because they have refused to honour requests by legislators to remove apps that permit smartphone users to navigate around the checkpoints.

The statement that  applies to this situation is : "Laws represent the minimum guidelines that companies must follow, whereas a firm's ethical stance may venture beyond the minimum level of compliance."

The correct answer is option A

In the scenario described, the companies are facing a situation where lawmakers have requested the removal of apps that allow users to navigate around sobriety checkpoints.

Option A is the most suitable because it reflects the fundamental distinction between legal compliance (following the law) and ethical behavior (going beyond what the law mandates). Let's break it down further:

Laws represent the minimum guidelines that companies must follow: This statement acknowledges that companies are legally obligated to comply with the laws and regulations of the jurisdictions in which they operate. In this case, lawmakers have made a request, but it's not legally mandated to remove these apps.

A firm's ethical stance may venture beyond the minimum level of compliance: This part of the statement highlights that ethical behavior goes beyond what is legally required.

Therefore, option A is correct.

Learn more about  ethical behavior here:

brainly.com/question/27962109

#SPJ3

Using the graph, complete the table that follows by indicating whether each statement is true or false. Statement True False Between points A and C, curve MM is inelastic. Curve MM is less elastic between points A and C than curve NN is between points A and D. Between points A and B, curve LL is perfectly inelastic.a. True.
b. False.

Answers

The answer & explanation for this question is given in the attachment below.

Determine the utilization and efficiency for each of the following situations. a. A loan processing operation that processes an average of 3 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 7 loans per day.
b. A furnace repair team that services an average of 2 furnaces a day if the design capacity is 6 furnaces a day and the effective capacity is 5 furnaces a day.
c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems

Answers

Answer:

a. Utilization= 30%

Efficiency= 42.85%

b. Utilization= 33.33%

Efficiency=40%

c. . Based on the calculations , the utilization will tend to relied on the design capacity and it may vary accordingly.

Explanation:

a. Calculation to Determine the utilization and efficiency for each

Calculation for utilization

Using this formula

Utilization = (Actual Output/Design Capacity)*100

Let plug in the formula

Utilization= (3/10)*100

Utilization= 30%

Using this formula to calculate for efficiency

Let plug in the formula

Efficiency = (Actual Output/Effective Capacity)*100

Efficiency= (3/7)*100

Efficiency= 42.85%

b. Calculation for utilization

Using this formula

Utilization = (Actual Output/Design Capacity)*100

Let plug in the formula

Utilization= (2/6)*100

Utilization= 33.33%

Using this formula to calculate for efficiency

Let plug in the formula

Efficiency = (Actual Output/Effective Capacity)*100

Efficiency= (2/5)*100

Efficiency=40%

c. In a situation where the design capacity is High this means that there is likelyhood that the utilization could be lesser despite the efficiency was high.

Therefore based on the above calculations , the utilization will tend to relied on the design capacity and it may vary accordingly.

Utilization and efficiency are calculated for loan processing and furnace repair operations. Higher efficiency does not always mean higher utilization.

a. To determine the utilization of the loan processing operation, we divide the average number of loans processed per day by the design capacity: 3 loans / 10 loans = 0.3 or 30%. The efficiency can be found by dividing the average number of loans processed per day by the effective capacity: 3 loans / 7 loans = 0.43 or 43%.

b. Utilization for the furnace repair team is found by dividing the average number of furnaces serviced per day by the design capacity: 2 furnaces / 6 furnaces = 0.33 or 33%. Efficiency is calculated by dividing the average number of furnaces serviced per day by the effective capacity: 2 furnaces / 5 furnaces = 0.4 or 40%.

c. No, systems with higher efficiency ratios do not always have higher utilization ratios. Efficiency measures how well resources are utilized, while utilization measures the percentage of available capacity being used. For example, a system with low efficiency may still have high utilization if it is operating at or near its design capacity. Conversely, a system with high efficiency may have low utilization if it is operating well below its design capacity.

Learn more about Utilization and efficiency here:

brainly.com/question/33124152

#SPJ3

The average fixed cost curve a. always declines with increased levels of output. b. always rises with increased levels of output. c. declines as long as it is above marginal cost. d. declines as long as it is below marginal cost.

Answers

Answer: a. always declines with increased levels of output.

Explanation: the average fixed cost curve graphically illustrates or shows the relation between average fixed cost a firm incurs in the short-run production of a good or service, and the quantity produced. The average fixed cost curve always declines with increases in the level of output resulting in a negatively sloped curve. This is to say that the average fixed cost is relatively high at smaller quantities of output, which then declines as the level of production increases--the more output increases, the more average fixed cost declines. Why this occurs is that a given fixed cost is spread over an increasingly larger quantity of output and as such, firms can profitably charge a lower price with increased output.

TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the manufacture and sale of this product. Unit sales price $ 30 Variable cost per unit 6 Fixed costs per year 360,000 a. Determine the contribution margin ratio. b. Determine the sales volume (in dollars) required to break even. c. Determine the sales volume (in dollars) required to earn an annual operating income of $440,000. d. Determine the margin of safety (in dollars) if annual sales total 60,000 units.

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Unit sales price $ 30

Variable cost per unit 6

Fixed costs per year 360,000

To calculate the contribution margin ratio, we need to use the following formula:

Contribution margin ratio= contribution margin / selling price

Contribution margin ratio= (30 - 6) / 30

Contribution margin ratio= 0.8

The break-even point in dollars formula is:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point in units= 360,000 / 0.8

Break-even point in units= $450,000

Now, the desired profit is $440,00:

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

Break-even point (dollars)= (360,000 + 440,000) / 0.8

Break-even point (dollars)= $1,000,000

Finally, the margin of safety:

Sales= 60,000*30= $18,000,000

Margin of safety= (current sales level - break-even point)

Margin of safety= 18,000,000 - 450,000

Margin of safety=  $17,550,000

A company has the following balances on December 31, 2021, after year-end adjustments: Accounts Receivable = $62,300; Allowance for Uncollectible Accounts = $6,500.Calculate the net realizable value of accounts receivable t realizable

Answers

Answer:

$55,800

Explanation:

The computation of the net realizable value of accounts receivable is shown below:

Net realizable value of account receivable = Account receivable - Allowance for Uncollectible Accounts

= $62,300 - $6,500

= $55,800

By deducting the allowance for uncollectible accounts from the account receivable so that the net realizable value of the account receivable

Other Questions