A firm has directly placed an issue of commercial paper that has a maturity of 60 days. The issue sold for P980,000 and has an annual interest rate of 12 percent. The value of the commercial paper at maturity is?

Q: Budweiser has gotten a 90-day bank loan equaling $10,000 with an annual interest rate of 15%,…

A: Number of day = n = 90 daysLoan Amount = a = $10,000Interest rate = r = 15%

Q: Give typing answer with explanation and conclusion  What is the Effective Annual Return on a $10…

A: Step 1 Effective Annual Return The rate of interest actually received on an investment or paid on a…

Q: Hewlett Plastics Inc. received a loan of $51,000.00 at 3.50% compounded quarterly to purchase…

A: The objective of the question is to calculate the time period of the loan for Hewlett Plastics Inc.…

Q: A Firm has two alternatives: a. to raise a loan of 100,000 €, due in 3 months, at 10% p.a.…

A: a. loan amount = €100,000  r=10% p.a =10%4=2.5% t=3 months=312 A=p×1+rt=100,000×1+2.5%×312=100625

Q: 7. A company has issued a $1,000,000 floating rate note with a coupon rate equal to the three- month…

A: Coupon payment:A coupon payment denotes a periodic interest payment made by a bond issuer to the…

Q: $11,000 is borrowed for 150 days at an 8% interest rate. Calculate the maturity value by the exact…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A company is looking to raise funds by issuing                   commercial paper with a face value…

A: Face value (FV) = $1,000,000 Maturity days (d) = 110 Interest rate (r) = 0.03 Value of commercial…

Q: What is the maturity value of P12,500 if it is invested. At 15% simple interest for 250 days using…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: The present worth of a deposit of $1000 now and $ every 6 months for 10 years at an interest rate of…

A: Present Value of ordinary annuity = Annuity*(P/A,r,n) Present value annuity due =…

Q: Hot Dog World is able to raise funds by issuing commercial paper with a face value of $500,000. If…

A: To arrange the funds, firms issues various instruments. Commercial paper (CP) is short term…

Q: You invest $6780 in a floating rate guaranteed investment certificate. For the first 30 months you…

A: A certificate of ownership or participation in a particular financial instrument or investment is…

Q: The interest rate on a GIC is 3.45% compounded semi-annually. What is the purchase price of the GIC…

A: Present value The amount of cash that must be invested in order to realize a given future objective…

Q: On a $10,000 principal investment, a bank offered interest rates of 3.45% on 270- to 364-day GIC's…

A: The investment in GIC earns fixed interest on the investment based on the applicable interest rate…

Q: X has a 3 million dollar floating rate loan which is re-set every six months. The company wants to…

A: Following formula is used to compute the FRA Payment FRAP=R-FRA×NP×PY11+R×PYwhere, FRAP= FRA payment…

Q: A treasury bill has a face value of $10000 and matures in 13 weeks. Assuming an interest rate of…

A: A treasury bill is a kind of debt security issued by the government and private companies for…

Q: what is the effective interest rate on a 3-month noninterest-bearing note with a stated value of…

A: An effective interest rate is a real rate of return on an investment which pays a fixed income over…

Q: Radu purchased a short-term $17.000, 60-day GIC which will earn 1% interest annually When the GIC…

A: Given: Amount invested "P" = $17,000 Period of investment "n"= 60 day Rate "r"= 1%  The maturity…

Q: PAK Limited provided a loan $2,000,000 to its subsidiary JEL Limited for 5 years which is interest…

A: Given information in question Loan amount               =          $2,000,000 Time period…

Q: Calculate maturity gap and changes in net interest income if the expected change in interest rates…

A: Maturity gap is the difference between firm's weighted average asset maturity (MA) and weighted…

Q: The maturity value of a P100,000 , four-month, 9% note is

A: Note receivable is one of the current assets of the business, on which payment is expected to be…

Q: Recently, a bank offered six-month CDs (Certificate of Deposit) at 6.0% compounded monthly. (Round…

A: Original Value = $1000 Compounding Frequency = 12 Interest Rate = 6% Period = 6 months    a) Annual…

Q: Maxwell Corporation recently issued 270-day commercial paper with a face value of $150,000 and a…

A: Face value of commercial paper= $150,000Simple interest rate= 13%Holding time period (in days)= 270…

Q: On January 1 of this year, Kaizen Corporation issued a $500 million note that matures in 10 years.…

A: A promissory note is a legal document used by the borrower to borrow funds. The borrower makes a…

Q: the maturity value of a five-year, $4000 compound interest gic is $6275.42. to three-figure…

A: It is a compound interest gic. Hence, compounding effect will be there as same as future value of…

Q: An initial deposit of $9000 is made into an account now, and a second deposit of $21000 is made into…

A: Compounding frequency is the number of times a sum of money earns a quoted nominal interest in a…

Q: Recently, a certain bank offered six-month CDs at 8.0% compounded monthly. (Round your answers to…

A: Step 1:    Step 2: Step 3: Step 4:

Q: Honesty Company is investing in 182-day treasury bills with a total fair market value of P2,500,000…

A: ANNUALIZED RATE OF RETURN  Annualized rate of return is a process for determining investment…

Q: Carry Trade, Inc., borrows yen when the yen is trading at ¥120/US$. If the nominal annual interest…

A:

Q: Company C bought a piece of equipment on January 1, 20X1 by signing the following note payable.

A: Income statement is one of the financial statement which is prepared to know the financial…

Q: Several months ago, Buddy Inc. issued a unique fixed income security. As of today, the security is…

A: Fixed-income securities are those securities that have a fixed rate of interest. This rate is called…

Q: A company is bidding to buy a fleet of lorries for £ 15,600,000. Payment on delivery 1,000,000 TL in…

A: Advance is an amount that is paid before the delivery of an asset is made.

Q: Over the year, the time-weighted return is 0%, and the dollar-weighted return is Y. Calculate Y. Y =…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Yield Calculation i. Assume that newly issued three- month (90 days) T - bills with a par value of…

A: As per company guideline, first three parts will be solved.