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 MoreCoupon 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 in ArithmeticThe average check for a restaurant can be calculated by looking at the median-priced and most popularly ordered items from the menu and then calculating the average amount of customers seated at a time. Calculating the average check amount is very important in determining a restaurant's revenue margins. Once this number is found, it can be multiplied with the number of guests served during a dinner service to calculate an approximation of revenue for any particular measurement of time, whether referring to a dinner service or a whole fiscal year.
Full Answer >To calculate the average of a group of numbers, first add the numbers together and then divide by the amount of numbers that are in the group. The formula for average is: sum/(quantity of numbers.)
Full Answer >The formula for finding percentages is to divide part of the whole quantity by the whole quantity and then multiply by 100 percent. A percentage change can be found by simply dividing the old quantity into the difference between the old quantity and the new quantity. This will produce some kind of decimal, integer or other kind of quotient value. To convert the value into a percentage, simply multiply it by 100.
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.
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