A coupon rate is calculated by using the formula c(1 + r)^-1 + c(1 + r)^-2 + ... + c(1 - r)^-y + B(1 + r)^-y = P. In this equation, the variable of c represents an annual coupon payment that is calculated in dollars, and not a percentage. The variable Y equals the number of years to maturity, the variable B stands for the par value and the variable of P represents the purchase price.Know More
Coupon rate is the calculation of a yield that is paid by a fixed income security. The preceding equation in layman's terms fundamentally represents the division of the sum of the annual coupon payments of the security divided by the par value of the bond.
Other important terms that an investor should be familiar with while using this calculation include the current yield and yield to maturity. The current yield is an actual payment, and the annual payout of the current market price, noted as a percentage. The yield to maturity represents the rate of return from all of the payoffs, whether it be a gain or loss as well as the coupon and capital gain. Another way to describe the yield to maturity is to refer to it as the best prediction or measure of the return rate itself. All of these variables need exact calculation in order to correctly figure the amount of the coupon rate.Learn more about Arithmetic
The phrase "pi r squared" refers to the mathematical formula used to determine the area of a circle. Normally, the equation is written as "pi * r2," or "Π * r2.Full Answer >
"X squared + y squared = r squared" is the formula also known as the definition of a circle, where r represents the radius. If the formula was "x squared + y squared = 4," then the circle would have a radius of 2 because 2 squared equals 4.Full Answer >
Friction loss in a fire hose is calculated by multiplying the friction loss coefficient by the flow rate divided by 100 to the power of two and multiplying that by the hose length divided by 100. Distance, diameter and GPM must be considered when calculating the friction loss.Full Answer >
To calculate occupancy rate, divide the time that a unit was rented out by the time the unit was available for rent. Another option is to divide the total number of units that are rented out by the total number of units.Full Answer >