10. A BMO mutual fund manager purchased commercial paper with a face value of$2 000 000 from Aecon for $1 994 000. If the manager held the paper until its maturity 60days later, what rate of return did it yield?

Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Answered: 10. A BMO mutual fund manager purchased…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The value in pounds of a fund at time t = 0 is V0 = 50, 000. After one year (at t = 1) it has increased to V1 = 51, 500 and at that time £1, 500 is withdrawn. After two years (at t = 2) the fund is worth V2 = 50, 800. (a) Compute the time-weighted rate of return. (b) If the fund is liquidated after two years what is the yield that has been achieved?
Suppose that a life insurance company has guaranteed a payment of $14 million to a pension fund 4.5 years fromfund and can invest the entire premium for 4.5 years at an annual interest rate of 6.25%, how much will the life in$13.7 million$17.8 million$18.4 million$14.1 million
(i) A client at ZBX Fin Planning deposits $85,000 in an account today in hope that it grows to $150,000 in 6 years. What annual compounded rate would the client need to earn? (Provide answer to nearest basis point, as in "12.34%" or "0.1234") (ii) Now suppose the client realizes she can expect to earn 9.96% APR compounded monthly in another portfolio marketed by ZBX. If the client earns that rate, how many years would it take to realize the above $150,000 goal? (Round number of years to nearest hundredth, as in "1.23" years)
1. A mutual fund has an offer price of $7.82 per share and a net asset value of $7.41. What is the sales charge percent? (Round to the nearest tenth.) A. 5.2% B. 5.5% C. 6.5% D. 94.8% 2. If Tanya's husband were to die, she and her children could live on $64,400 per year. Tanya makes $35,100 annually, and estimates additional income of $21,500 from other sources. How much insurance should she purchase on her husband to cover the shortfall, assuming a 16.7% prevailing interest rate? (Round your answer to the nearest $1,000.) A. $40,000 B. $42,000 C. $47,000 D. $48,000
Sixteen years after purchasing shares in a mutual fund for $5900, the shares sold for $11,600. What is the total return ? What is the annual return ?
Simple Interest An investor purchased 250,000 USD in 364-day T-bills 315 days before maturity to yield 1.12%. The purchase price was 247,606.69 USD. He sold the T-bills 120 days later to yield 1.47%. What annualized rate of return did the investor realize on the investment? Also, can this be done with a financial calculator?
You are 22 years old and you want to have $1 million in your retirement account at age 50. How much money do you need to invest each year (to the nearest $100), if you can get an 8% annual rate of return on mutual funds that invest in S&P 500 stocks? OA $35,700 OB.$10,500 OC. $15,600 O D. $20,600 Reset Selection
4. Suppose a (very skilled) fund manager earns a safe return of 0.7% pertrading day. There are 252 trading days per year. (a) What will be your annualized holding period return on $100 invested in the fundif the manager allows you to reinvest in her fund the 0.7% you earn each day? (b) What will be your annualized holding period return assuming the manager putsall of your daily earnings into a zero-interest-bearing checking account and paysyou everything earned at the end of the year?

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

10. A BMO mutual fund manager purchased commercial paper with a face value of $2 000 000 from Aecon for $1 994 000. If the manager held the paper until its maturity 60 days later, what rate of return did it yield?