3. An eligible dealer purchased 182 days P1,000,000 treasury bills at 12%, after 5 days,he sold the 50% of the treasury bills to an investor to earn at the rate of 11%.a. Compute for the purchase price on the part of investorb. Discount of investorc. Income realized by the eligible dealer on all the treasury bills

The given details related to the purchase are:Purchase price of T-bill: P1,000,000YTM at purchase:…

Answered: 3. An eligible dealer purchased 182…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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SOLVE STEP BY STEP SHOW THE ENTIRE PROCEDURE1. Mr. Jiménez was loaned $300,000 pesos payable over 15 years at an annual interest rate of 15.65% with monthly capitalization.Calculate:a) The compound amountb) The interest accrued during that time
Ay 1. An investor bought a $500,000 face Government of Ontario Treasury Bill 355 days before maturity at an interest rate of 3.9% p.a. She sold the T-bill 219 days later at a rate of 3.45% p.a. Determine: a. The amount she paid for the T-bill. b. The amount she sold the T-bill for c. The rate of return (R) she realized on her investment over the 219 days.
Drama plc has a total balance on their receivables account at the year end of £54,500. After reviewing their customer accounts, Drama plc have decided to do the following: make a 50% specific provision relating to a debt of £9,200 create a general receivables provision of 2% Drama plc have a receivables provision brought forward of £2,850. What will be the value of the general receivables provision?£ 906 What will be the irrecoverable debt expense on the P or L? £ 2660 (Enter the values with no E sign, comma or decimal places)
Given: A dealer purchased treasury bills at 10%, 164 days, $10,000,000. What is the purchase price and discount of the dealer? Same figures that he transfer to an investor at the rate of 12%, after 6 days of purchase. What is the purchase price and discount of the investor?
EX.06.144 On April 7, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, the company sold the note to a bank at a 13% discount rate. Required:Compute the amount of interest revenue and the loss on sale of the note. Assume a 360-day year. Round your answers to two decimal places. Interest revenue $ Loss on sale of note $
Max Wholesaler borrowed $7,500 on a 8%, 120-day note. After 45 days, Max paid $2,625 on the note. Thirty days later, Max paid an additional $2,250. Use ordinary interest. a. Determine the total interest using the U.S. Rule. (Round your intermediate balances and interest amounts to the nearest cent. Round your final answer to the nearest cent.) Total interest amount 24 b. Determine the ending balance due using the U.S. Rule. (Round your intermediate balances and interest amounts to the nearest cent. Round your final answer to the nearest cent.) Ending balance due 24
1. On July 15, 1996, what will John receive on selling note to Ben to whom money is worth 4% compounded semiannually? July 15, 1995 Three years from date, I promise to pay John Ordonez an order PHPB,000 with accumulated interests from date at 3% compounded semiannually. (Signed) Samuel Garcia 2. P25,000 was borrowed on May 15, 1996. It was to be paid on August 15, 1999 with accumulated interest at 6% compounded quarterly. No payment will be made until August 15, 2000. What is due then if the creditor demands that interest shall be at the rate of 8% compounded semiannually after August 15, 1999? 3. If money is worth 5 % % compounded semiannually, which obligation is the more valuable: a) e 7,500 due at the end of 2 years, or b) 8,000 due at the end of 3 years?
nt Shawn Bixby borrowed $25,000 on a 120-day, 15% note. After 60 days, Shawn paid $2,800 on the note. On day 96, Shawn paid an additional $4,800. Use ordinary interest. a. Determine the total interest use the U.S. Rule. Note: Do not round intermediate calculations. Round your answer to the nearest cent. Total interest b. Determine the ending balance due use the U.S. Rule. Note: Do not round intermediate calculations. Round your answer to the nearest cent. Ending balance due
Chico Company borrowed $40,000 on a four-year, 8% installment note. How will this transaction affect Chico's financial statements? Multiple Choice O O Cash and notes payable increase by $43,200 Cash and interest payable increase by $40,000 Cash and notes payable increase by $40,000 Cash and interest payable increase by $43,200
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Question 1 Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest rate. a) What is the implied per annual simple interest rate for her purchasing (expressed as a percentage and rounded to three decimal places)? Select one: a. 0.076 b. 0.032 c. 0.031 d. 0.088 Question 2 Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest rate. b) What is her selling price (rounded to four decimal places)? Select one: a. 98740.2903 b. 98634.0935 c. 98846.7161 d. 99317.7280 Question 3 Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest…

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