Using Table 19 3 as a rough guide, calculate the full cost per redeemed coupon given the following facts (1) face value 75 cents (2) 20 million coupons distributed at $7 per thousand (3) redemption rate 3 percent (4) handling cost 8 cents and (5) misredemption rate 5 percent ...

Distribution costs 140000 Redemption rate 3 Redeemed coupons 6000 ...

Using Table 19.3 as a rough guide, calculate the full cost per redeemed coupon given the following

Question:

Using Table 19.3 as a rough guide, calculate the full cost per redeemed given the following facts: (1) = 75 cents; (2) 20 million coupons distributed at $7 per thousand; (3) redemption rate = 3 percent; (4) handling cost = 8 cents; and (5) misredemption rate = 5 percent.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...