If your company is issuing new semi-annual 10 year bonds at par, what coupon rate must they have if they are rated BBB

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Answer 1

The coupon rate that the company issuing new semi-annual 10-year bonds at par with a BBB rating is 8%, given its 2% credit spread with the treasury bonds.

What is a credit spread?

A credit spread shows the difference in the yield rate between a U.S. Treasury bond and another debt security that has the same maturity period but a different credit quality.

Data and Calculations:

Treasury bonds rate = 6%

Credit Spread for BBB rating = 2%

Coupon rate for a BBB-rated company = 8% (6% + 2%)

Question Completion:

Use the following information for this question:

Rating Credit Spread

AAA           0.50%

AA    0.75%

BBB    2.00%

10-year treasury bonds ($100 Par value) with semi-annual coupons and a 6% coupon rate have a price of $95.00.

Thus, the coupon rate that the company issuing new semi-annual 10-year bonds at par with a BBB rating is 8%, given its 2% credit spread with the treasury bonds.

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Related Questions

Now, use your paragraph to inform frankie about his options. in this paragraph, describe the economic concepts that you used to create your outline. explain in greater detail how each of these concepts will help frankie to make a decision to buy or not to buy a new pair of shoes.

Answers

Answer:

Explanation:

Sample response: Frankie should consider several strategies before buying a new pair of shoes. First, he should think about whether these shoes are a need or a want. Next, he should consider opportunity cost. If he buys the shoes, how else could he have spent that money? Could he have made better use of his resources? Finally, he must consider the issue of setting goals. He must identify whether this is a goal to accomplish now or in the future.

Why does Prof. St. Clair argue that allowing Lehman Brothers Investment Bank to fail in 2008 (i.e., during the Bush Administration) was a terrible decision?

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According to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 breached the Fed's primary mandate, and worsened the financial crisis of 2008.

What caused the Lehman Brothers' failure?

The main cause of the failure of Lehman Brothers Investment Bank was its involvement in the subprime mortgage market.

Lehmann Brothers recorded unprecedented loss due to the 2008 subprime mortgage crisis.

The investment bank held onto large positions in subprime and other lower-rated mortgage tranches when securitizing the underlying mortgages.

Thus, according to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 was a terrible decision because its failure breached the Fed's primary mandate, and worsened the financial crisis of 2008.

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If a competitive firm is currently producing a level of output at which profit is not maximized, then it must be true that

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If the competitive firm is currently producing at a level of output at which profit is not maximized then it must be true that the Marginal revenue is less than the Marginal cost.

What is Marginal revenue?

Marginal revenue refers to the increase in revenue earned by the increase in the sale of one additional unit of output.

The primary purpose of a firm is to make a "Profit" in the Long-run.

The goal of a firm is to maximize profits and minimize losses, so a shutdown is near if a firm is operating at the level of output where marginal revenue is not equal to or lesser than marginal cost.

Thus, the Firm keeps expanding its operations and production activity as long as the  Marginal revenue is more than the marginal cost.

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occurs when employees at the acquired company willingly embrace the cultural values of the acquiring organization. Group of answer choices Deculturation Assimilation Separation Integration Negotiation

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When employees at the acquired company willingly embrace the cultural values of the acquiring organization, it is known as assimilation.

What is assimilation?

Assimilation is the process by which employees at a company that is being acquired embraces the culutural values of the company that is acquring them.

Cultural values differ among organisations. Thus, it is necessary for employee at the acquired company to embrace the change in order to ensure smooth running of the firm.

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A human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.4. What problem is most likely to result from a compa-ratio of this size

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The problem that is most likely to result from a compa-ratio of this size is when the company difficulty keeping costs under control.

What is a compa-ratio?

This is a ratio that are used by compensation professionals to assess the competitiveness of an employee's pay level.

The ratio accesses the current pay rates as a percentage of range midpoints to know whether know wheter the employee is paid below or above market rates.

Howwver, when the compa-ratio of 1.4 is gotten, then, this happens because the company difficulty keeping costs under control.

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______ are full-time salaried employees and are paid by the county or state (or by both) to represent defendants who do not have the money to retain private counsel

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they are public defenders.

Managing trade promotions programs constitutes a challenging part of the marketing planning process because ________.

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Managing trade promotions programs is the challenging part of marketing planning process because it deals with gaining the heart of consumers.

What is Marketing planning?

Marketing planning is a st of activities that help in supporting the business goals to achieve high sales.

One of the part of this planning is the establishment of a timeline for the process.

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In the context of the compensation of expatriate managers, a compensation system designed to match the purchasing power in a person's home country is called _____.

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Answer:

The balance sheet approach.

All of the following are potential benefits of innovation EXCEPT: Group of answer choices improved quality (attributes) of existing products. new products that better satisfy customer needs. reduced costs of making products that customers want. certainty concerning demand for new product

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The potential benefit of innovation is the improved quality (attributes) of existing products. The correct option is A.

What is innovation?

Innovation is introducing new things and ideas.

The advantages of innovation are:

High relative advantageTrialabilityobservability        CompatibilityLow complexity

Thus, the correct option is A, improved quality (attributes) of existing products.

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The Chronicle sells a local neighborhood group running an all block yard sale a quarter-page ad for $180. There are 18,000 subscribers, so the cost per thousand (CPM) is

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Based on the cost of the quarter-page ad per page, the cost per thousand charged by the Chronicle is $10 per page.

What is the cost per thousand charged?

This can be found by the formula:
= 1,000 x Cost of ad / Thousands of subscribers

Solving gives:

= 1,000 x 180/ 18,000

= 1,000 x 0.01

= $10

In conclusion, the CPM is $10.

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Managerial accountants:

a. create the company’s financial statements that are submitted to government agencies such as the Internal Revenue Service.

b. negotiate contracts with suppliers

c. create financial reports and provide other types of accounting information to investors.

d. provide managers within the organization with reports to make good business decisions.

Answers

Managerial accountants provide managers within the organization with reports to make good business decisions.

Who are Managerial accountants?

They are account managers, they help a company to manage the financial account and hep to make decisions based on the trend on the account.

They also hep perform various task that is associated with the account.

Therefore, Managerial accountants provide managers within the organization with reports to make good business decisions.

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In a standard cost system, costs are assigned to all of the following, except for: a.fixed overhead. b.direct materials. c.direct labor. d.variable overhead. e.None of these choices are correct.

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In a standard cost system, costs are assigned to fixed overheads, direct materials, direct labor, and variable overhead.

What do you mean by Standard costing?

Standard costing refers to the practice of creating the estimates or standard costs for all the activities of a company.

The main reason for using standard costs is that there are many applications where it is considered very time-consuming to collect the actual costs so standard costs can be used as a close approximation to actual costs.

Therefore, E is the correct option.

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The monetary rule is the view of the: a.Monetarists that the Fed should expand the money supply at a constant rate. b.Monetarists that monetary policy is most important. c.Classical economists that monetary policy is most important. d.Keynesians that monetary policy is most important. g

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The monetary rule is the view of the Monetarists that the Fed should expand the money supply at a constant rate.

What is Monetary rule?

The monetary rule states that there has to be constant monetary growth. Friedman, who died in 2006, proposed a monetary policy stating, stating that the Fed should be required to regulate inflation rate to match the rate of real GDP growth, leaving inflation unchanged.

Monetarism is a macroeconomic theory that governments can promote economic stability by targeting inflation.

In fact, a collection of ideas based on the belief that the total amount of money in the economy is the key to economic growth.

Thus, The monetary rule is the view of the Monetarists that the Fed should expand the money supply at a constant rate.

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detect and correct significant variations, or discrepancies, in the results of plans and activities.Multiple ChoiceQuality standardsQuantity standardsControl systemsPerformance systems

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A contol system detect and correct significant variations, or discrepancies, in the results of plans and activities.

What is a control system?

It should be noted that a control system manages, commands, and regulates the behavior of other devices or system.

In this case, a contol system detect and correct significant variations, or discrepancies, in the results of plans and activities.

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. Fixed costs are costs that remain the same in total dollar amount as the activity base changes. vary with the costs of the activity. are characteristically on the high end. are not considered when planning a budget.

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Fixed costs are costs that remain the same in total dollar amount as the activity base changes. vary with the costs of the activity. Read below on fixed costs.

What are fixed costs?

Fixed costs are costs that remain the same in total dollar amount as the activity base changes. Cost per unit changes inversely to changes in the activity base. Total cost remains the same regardless of changes in the activity base.

Therefore, the answer is option A. vary with the costs of the activity.

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To find entries posted before the client's closing date what do you do?

1. Use the bank register.
2. Use the Audit Trail Report.
3. Use the Closing Date Exception Report.
4. None of the above.

Answers

what is inorganic and organi colloids

Answer:

3

Explanation:

its #3 because you would check the date and find out the closing report and yeah

Will has been very meticulous in managing his employees. They have come to believe that he will do exactly what he says he will when he interacts with them. This is the concept of ______.

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Will  has been very meticulous in managing his employees. They have come to believe that he will do exactly what he says he will when he interacts with them. This is the concept of trust.

What is the concept of trust?

Trust is a faith in the likelihood that someone will act in a certain way. A mental attitude toward the concept that someone is dependable is known as trust.

Trust is a feeling of assurance and security that a partner is concerned about the person.

In the above case, Will has been diligent in his employee management. When he engages with them, they have learned to think that he will do exactly what he says he will. Then, this is defined as the concept of trust.

Therefore, he will is using the concept of trust.

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Even though president reagan campaigned on his plans to cut the size of government, government spending during his administration: fell only a little. went up slightly. doubled. fell dramatically.

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government spending during his administration doubled.

Answer:

Doubled

Explanation:

for real

Assume Brandon can buy either 1 DVD for $20 or 3 CDs for $25. What is the opportunity cost if he decides to buy 3 CDs

Answers

Answer:

it yamom

Explanation:

In noting that he had "yet to engage in a direct-action campaign that was ‘well timed,’" martin luther king, jr. , was most likely arguing against:.

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Martin Luther King, Jr. was argued that African-Americans should be more patient and that civil rights should not be for all.

Who is Martin Luther King Jr?

Martin Luther King Jr can be regared as an American Baptist minister as well as

activist who was the civil rights movement leader in 1955 .

Therefore, he stressed that African-Americans should be more patient and that civil rights should not be for all.

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If a manager is in a direct chain of command and has formal authority over people and resources, this is a ______ manager.

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If a manager is in a direct chain of command and has formal authority over people and resources, this is a line manager.

What is a line manager?

A line manager serves as the manager that is accountable for their department, or part in the business.

They manage one or more members of staff and they have has formal authority over people and resources.

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Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their statements. If the APR is stated to be 20%, with interest compounded daily (365 days in a year), what is the card's effective annual interest rate?

Answers

The effective annual interest rate would be 19.5%.

APR is stated to be 20%, with interest compounded daily (365 days in a year),the card's effective annual interest rate will be 19.5 %.

What is Annual Percentage Rate (APR) ?

The yearly interest rate you'll pay if you have a balance on your credit card is referred to as the annual percentage rate (APR). Some credit cards feature variable APRs, which means that over time, your rate may go up or down.

The best credit card APR is one that is around 10%, but you might need to visit your neighborhood bank or credit union to discover one. An APR that is lower than the average would also be regarded favorably by the Federal Reserve, which monitors credit card interest rates.

APR per year=20%

APR per month=20%/12=1.67%

EFF%=Effective Annual rate= (1+1.67%)12-1

EFF%=Effective Annual rate= (1.067)12-1

EFF%=Effective Annual rate= 1.1950-1=.1950 or 19.50%

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For Gundy Company, units to be produced are 5,000 in quarter 1 and 7,000 in quarter 2. It takes 1.6 hours to make a finished unit, and the expected hourly wage rate is $15 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2022.

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The preparation of a direct labor budget for Gundy Company for the 6-months ending June 30, 2022, is as follows:

Gundy Company

Quarterly Direct Labor Budget

For the 6 months ending June 30, 2022:

                                           Quarter 1     Quarter 2

Production units                    5,000          7,000

Labor-hour per unit                  1.6                1.6

Total direct labor-hours       8,000          11,200

Hourly wage rate                    $15               $15

Total direct labor costs    $120,000   $168,000

What is a direct labor budget?

The direct labor budget is a budget that calculates the total labor hours required to produce the budgeted units, according to the production budget.

The total direct labor hours are used to multiply the wage rate per hour to obtain the total budgeted direct labor costs.

Data and Calculations:

                                      Quarter 1     Quarter 2

Production units               5,000          7,000

Labor-hour per unit             1.6                1.6

Total direct labor-hours   8,000        11,200

Hourly wage rate              $15             $15

Total direct labor costs   $120,000   $168,000

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In the hotly competitive auto industry, Geely faces high pressure for cost reductions. The company also sells its Volvo brand to the same high-income, safety-conscious buyer the world over. The best strategy for Geely is a(n) __________ strategy.

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Global standardization is the best strategy for Geely to device when faces high pressure for cost reductions.

What is Global standardization?

Global standardization serves as the marketing approach which involves using of standard marketing strategies to promote products internationally.

Conclusively, Global standardization can help a firm facing high pressure for cost reductions.

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The step in which a salesperson meets the customer for the first time is the __________ step of the creative selling process.

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The step in which a salesperson meets the customer for the first time is the approach step of the creative selling process.

Who is a saleperson?

A salesperson can be defined as the person whose sole reponsibilities is to market and sell a company product to potentials customers or buyers.

When a sales person meet a customer for the first time, the sales person need to first approach the customers  before marketing a product to the customer.

Therefore the step in which a salesperson meets the customer for the first time is the approach step.

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The capital investment evaluation method that subtracts the initial investment from the discounted future net cash flows from the investment at the required rate of return is the:

Answers

Answer: net present value

Explanation:

Transaction Processing Systems (TPS) can make decisions using predetermined rules and processes. This is an example of a(n) _________ decision of a(n) ____________ control.

Answers

TPS can make decisions based on pre-defined rules and processes. This is an example of an operational control's structured decision.

What is Transaction Processing Systems?

Transaction processing system is also denoted as TPS. It is a method of computing that breaks down work into discrete, indivisible activities known as transactions.

A transaction processing system is a software or may be hardware combination that facilitates transaction processing.

Therefore, the TPS is an example of a structured decision of an operational control.

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ent
What can help you meet your budget while shopping for
important items?
Buying the item with the best features.
A
Prioritizing features to meet your needs.

Answers

A list of the items one needs and prioritizing the features one needs will be most helpful in budgeting while shopping for important items.

What is budgeting?

Budgeting is a preparation of estimated expenses that one wishes to spend to serve the purpose of the purchase as such. It is essential in comparison of estimates and actual expenses one meets with.

For example, one needs to purchase a laptop for the purpose of video editing, with good processors that support smooth and lag-free video editing.

In such cases, making a list of essential features in a laptop and giving the topmost priorities to the features one needs are to be taken into consideration while budgeting for such purchase.

Hence, options B; giving the priority to the needed features; and making a list of all the needed features will be the most helpful ones while budgeting the purchase for an essential purchase.

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A firm is expected to pay a dividend of $2.00 next year and $2.14 the following year. Financial analysts believe the stock will be at their target price of $65.00 in two years. Compute the value of this stock with a required return of 8 percent. Select one:

Answers

Based on the dividends and the target price set by financial analysts, the value of the stock will be $57.40.

What is the value of the stock?

This can be found as:

= Present value of first dividend + Present value of second dividend + Present value of stock price in 2 years

Solving gives:

= 2 / 1.10 + 2.14/1.10² + 65/1.10²

= $57.40

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True or false: A Balanced Scorecard framework allows companies to asses the value of IT investments in terms of contribution to strategic objectives

Answers

A Balanced Scorecard framework allows companies to assess the value of IT investments in terms of contribution to strategic objectives, is the true statement.

What is a balanced scorecard?

The balanced scorecard is a strategic planning and performance management system that records financial and non-financial variables to determine the effectiveness of a business and when corrective action is required.

Companies can use a Balanced Scorecard framework to evaluate the value of IT investments in terms of their contribution to strategic goals.

This is because the scorecards provide management with valuable insight into their firm's service and quality in addition to its financial track record.

Therefore, the given statement is true.

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PLSSS HELP IF YOU TURLY KNOW THISS Captures sunlight to make food for the cell through photosynthesis. What is the difference between health-related and skill-related fitness?. In three to four sentences, describe how fables can help you learn about people. Ignore the other questions I just need help with numbers 18 and 25 how do you work it out please help me out I would of have helped you Groupthink tends to stimulate rational discussion within groups. please select the best answer from the choices provided t f The Jones family plans a trip to the amusement park and purchase a family package for $128.00. They also want to but lunch and souvenir cups. The chicken platter costs $8.50 each and the burger platter costs $9.50 each. The souvenir cups each costs $100.00, which includes unlimited refills. Mr. and Mrs. Jones have a budget and are trying to decide who will order which platter and who will buy a souvenir cup. Let x represent the number of chicken platters, y represents the number of burger platters, and z represent the number of souvenir cups. Which technique can be used to remove air bubbles from a syringe? a) Hold the syringe downward, shake vigorously for 10 seconds, and expel the bubbles through the needle using the syringe plunger. Hold the syringe upright, provide a firm tap or flick to the b) barrel, and expel the bubbles through the needle using the syringe plunger. Hold the syringe upright, shake vigorously for 10 seconds, c) and expel the bubbles through the needle using the syringe plunger. Hold the syringe downward, provide a firm tap or flick to the d) barrel, and expel the bubbles through the needle using the syringe plunger. How do you do this I don't understand A monopoly is a firm that sells all or nearly all of the goods and services in a given market. What determines if a firm is a monopoly producer Why would other European countries not accept Jewish people who were trying to escape at the time? Read the rough draft of a works cited page. works cited gregor, saul. harnessing the wind. chicago: skyline publishing, 1998. cayman, felicia. the windmill way. topeka: heart of america press, 2010. tudor, tanya. off-shore sources. portsmouth: sunshine house, 2008. diaz, carlos. alternate energy. new york: academic press, 2003. using mla guidelines, which citation should be listed first on this page? gregor, saul. harnessing the wind. chicago: skyline publishing, 1998 cayman, felicia. the windmill way. topeka: heart of america press, 2010. tudor, tanya. off-shore sources. portsmouth: sunshine house, 2008. diaz, carlos. alternate energy. new york: academic press, 2003. Evaluate the measure x in the figure. What is the area of Vivian's backyard Find the area of this triangle, round to the nearest 10th A 22 ohm resistor and a 33 ohm resistor are connected in series and placed across a 120-v potential differancea. What is the equivalent resistance of the circuit?b. What is the current in the circuit?c what is the voltage drop across each resistor?d what is the voltage drop across the two resistors together? Glaucoma is a disease of the eye that is manifested by high intraocular pressure. Thedistribution of intraocular pressure in the general population is approximately normal withmean 16 mm Hg and standard deviation 3.2 mm Hg. If the normal range for intraocularpressure is between 10 and 22 mm Hg, than what proportion of the general population wouldfall within this range? Question 20 of 20Which statement accurately describes how the velocity of an object in freefall changes?A. The distance it travels each second increases at a constant rate.B. The distance it travels each second decreases at a constant rate. C. The distance it travels each second is constant. iS D. The distance it travels each second varies irregularly.SUBMIT I don't understand this question at all please help if you do Which economic system prevalent in Europe in the sixteenth century involved using ones wealth to create more wealth?