Doisneau 16-year bonds have an annual coupon interest of 9 percent, make interest payments on a semiannual basis, and have a $1 comma 000 par value. If the bonds are trading with a market's required yield to maturity of 16 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds?

discount bond.

Explanation:

A premium bond is one whose price is above its par value, while a discount bond is one whose price is below its par value. Therefore, to find the answer, we need to find the price of the bond.

To find the price of the bond, we use the formula attached in this answer.

In the formula, YTM = Yield to Maturity, C = Value of the Coupon payment, P = par value of the bond, and n = number of periods till matirity.

We have this information.

YTM = 16%

P = 1,000

The number of periods n = 32 because it is a 16-year bond that pays a semiannual coupon, so 16*2 = 32

Finally, the coupon payment is 45 because the coupon rate is 9%, and the coupon is paid semiannually, so the formula is 9%*1,000 / 2.

Plugging the amounts into the formula we obtain the following

Price of the bond = 287.5

Because the price of the bond is so much lower than its par value, the bond is a discount bond.

sound is invisible, but sometimes we can feel it. when a kettle-drum is thumped with a stick that time the tight drum skin moving up and down very quickly for some time and then it pumped sound waves into the air. loudspeakers also work in a similar manner.

components of a speaker:

electromagnet

in order to translate an electrical signal into an audible sound, an electromagnet is used in looudspeakers

  suspension

suspension is used to   center the voice coil in the gap of the magnet and it exerts a restoring force to keep it there. suspension is used to limits the maximum mechanical excursion of the diaphragm and voice coil.

voice coil

voice coil is a coil of wire which is attached to the apex of a loudspeaker cone. it provides the motive force to the cone by the reaction of a magnetic field to the current passing through it.

cone

in a   loudspeaker, a   thin, semi-rigid membrane attached to the voice coil, which moves in a magnetic gap due to which it vibrates   and produced sound. it is known as diaphragm and it can also be called a cone, though not all speaker diaphragms are cone-shaped.

surround

surround is also known as front suspension. surround is used to join the cone to the chassis. together with the suspension it controls the cone excursion, and it is also used to   determine how energy which is   travelling through the cone is absorbed, and how the speaker limits when it reaches the ends of its travel.

dustcap

dustcap is used to protect the voice coil from dust and dirt. it is a part of the cone.

how speaker work

the outer part of the cone is fastened to the outer part of the loudspeaker's circular metal rim. the inner part is fixed to   voice coil that sits just in front of a permanent magnet . when loudspeaker is hooked up to a stereo, electrical signals feed through the speaker cables into the coil. it will convert the coil into an electromagnet magnet . when electricity flows back and forth in the cables, the electromagnet either repels or attract the permanent magnet. this moves the coil back and forth, and it pull and push the loudspeaker cone. like a drum skin vibrating back and forth, the moving cone pumps sounds out into the air.in this way loudspeakers works.

answer; the above statement is (true);