Big Canyon Enterprises has bonds on the market making annual payments, with 16 years to maturity, a par value of $1,000, and a price of $957. At this price, the bonds yield 9 percent. What must the coupon rate be on the bonds

8.48%

Explanation:

Calculation to determine What must the coupon rate be on the bonds

First step is to find the coupon rate of the bond.

Coupon payment = $957 = C(PVIFA9.0%,16) + $1,000(PVIF9.0%,16)

Solving for the coupon payment will give us C= $84.83

Now let calculate the coupon rate using this formula

Coupon rate= Coupon payment/ Par value

Let plug in the formula

Coupon rate = $84.83 / $1,000

Coupon rate = .0848*100

Coupon rate =8.48%

Therefore the coupon rate on the bonds is 8.48%

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

reducing the scale of the market for a new product.