Gabriele Enterprises has bonds on the market making annual payments, with 18 years to maturity, a par value of $1,000, and selling for $780. At this price, the bonds yield 6.9 percent. What must the coupon rate be on the bonds?

The coupon rate on the bonds is 4.73%

Explanation:

To calculate the coupon rate of the bond, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Let coupon rate be x.

Coupon Payment (C) = 1000 * x = 1000x

Total periods (n)= 18

r or YTM = 6.9%

The formula to calculate the price of the bonds today is attached.

We will input the values of the available variables.

780 = 1000x * [( 1 - (1+0.069)^-18) / 0.069]  +  1000 / (1+0.069)^18

780 = 1000x * (10.13209373)  +  300.8855326

780 - 300.8855326  =  1000x * 10.13209373

479.1144674 / 10.13209373  =  1000x

47.28681752 / 1000 = x

x = 0.04728681752 rounded off to 0.0473 or 4.73%

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

correct, but each time you dont pay the price of the penalty can increase.