The amount of interest paid per year will be
This interest is of the face value of the bond
So the bonds annual interest rate is 3.2% (correct option is a)
3 A 5-year bond costs 5,000 baht and will pay a total of 800 baht interest over its lifetime. What is its annual interest rate? (a) 3.2% (d) 32% (b) 1.25% (e) 0.032% (e) 12.5% (f) None of them Cho...
a. Pro A b. Pro B c, Pro C d. All three e. None. 14. If you pay $1,000 for a 30-year bond that pays $60 at the end of each year, what compound rate of return would you earn if you hold the bond full-term, and if do not re-invest the coupon stream? A)7% B) 6.5% C) 2.57% D) 3.49%. E) 4.57% 15. What rate of return did you earn if you reinvested at an annual rate of 6%?...
E12-4 A,B,C,D,E,F,G da bodo interest on and the F12-2 Juary 1 2004. bones Company On The bonds pay interest on was 5875,37 Required: the the c. Explain Was the market interest rate on January 1, 2004, s h coupon rate on the bonds e w Prepare the journal entry to issue the bonds Explain how an increase in market interest rates during 2006 will stic (1) Jones Company (2) The original bondholders who sell the bonds during 2006 (3) Investors...
Because of its inability to control film and personnel costs in its radiology department, Sanger General Hospital wants to replace its existing picture archive and communication (PAC) system with a newer version. The existing system, which has a current book value of $2,250,000, was purchased three years ago for $3,600,000 and is being depreciated on a straight-line basis over an eight-year life to a salvage value of $0. This system could be sold for $800,000 today. The new PAC system...
macoroeconomics 1. Society as a whole faces opportunity costs because a. there is not enough money to go around b. politicians are greedy c. resources are scarce d. our needs are unlimited 2. Mary decides to spend 3 hours working overtime rather than watching a video with her friends. She earns $9 an hour. Her opportunity cost of working is: a. the enjoyment she would have received had she watched the video with friends. b. $27 she earns working c....
Given the value line: a.) what is the top line growth for 2015? b.)Bottom-Line? c.) Annual dividen per share? d.) Current ratio in 2014? e.) % bonds of Captial structure f.) p/e ratio g.) beta h.) EBITDA % I.) Long-Debt % change 2015 We were unable to transcribe this image41.65 TO 20.1 (Media 92) ATM 1.12 ** 3.4% YAKE 1965 07 2:22. 87 3. 35.8 COCA-COLA NYSE:KO TIMELINESS 4 Lowered 70115 h: 289 29 SAFETY . 1 New 727190 LEGENDS...