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: The market’s 1 year interest rate is 6% while the 2-year interest rate is 7%. b) If a company needs…

A: IR1​ is the 1-year interest rate, which is 6%, IR2​ is the 2-year interest rate, which is 7%, and n…

Q: You enter in a long position in a 6x12 FRA at a LIBOR rate of 3.00% and a nominal value of $10M. (a)…

A: Solution:-The scenario in question involves holding a long position in a Forward Rate Agreement…

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: A bank is offering 2.501% interest on an investment of 7 years. If you invest OMR 10000 today what…

A: Future value is the value of present cashflow compounded to future date. formula: FV=PV×1+RN where,…

Q: A firm sells the same material with two separate payment plans. 1. According to the 1st payment…

A: Total present value of sale = Present value of monthly payment + Present value of interim payment…

Q: 4. A certain company sells engines worth P1,000,000 cash. If paid on installment basis, requires a…

A: We need use loan amortization formula(PV of annuity) to calculate loan amount PV =PMT1-1(1+i)ni…

Q: Suppose GHI Bank has a portfolio of 8-year fixed rate mortgages with total principal amount of $50…

A: On any notional amount, a rate of interest swap is an agreement to exchange a series of money flows…

Q: Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two…

A: Present value is the current value of a future sum of money or stream of cash flows given a…

Q: TBTF Bank makes a 3 year interest only loan to AFC Inc of $2,350,000.00. The interest rate on the…

A: Step 1: The quarterly interest rate We are given that the annual interest rate (i(52)) is 12.500%.…

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: 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: borrower and lender negotiate a $25,000,000 interest-only loan at an 8.0% interest rate for a term…

A: Yield maintenance fees:Investors can earn the same yield through prepayment. YMF is a prepayment…

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: Suppose you made a 90-day investment with a maturity value of $18,000. Find the present value of the…

A: The maturity value is the future value. We need to determine the present value of this. For that we…

Q: a customer invests IDR 20 million in the money market and earns 12% compound interest How much money…

A: The addition of interest to the principal sum of a loan or deposit is known as compound interest. It…

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: 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: Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two…

A: Present value refers to the current worth of the investment which is computed by taking into account…

Q: Problem: A debt of P15, 000.00 was paid for as follows: P4, 000.00 at the end of 1 month, P5,000.00…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

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: 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: what is the liquidity premium on the commercial pape

A: The liquidity premium is the extra return or yield that investors demand holding an asset that is…

Q: Cement Corporation has taken a one-year loan with a face value of $500,000 and a coupon rate of 18%.…

A: Duration of the bond shows how much the bond is sensitive to the interest rate and it shows the…

Q: A loan of £10,200 is to be repaid over a 11-year contract by three initial payments of £1,000,…

A: Loan amount = £10,200 Annual nominal interest rate = 7.3% convertible quarterly Quarterly interest…

Q: You purchase a TIP note with an original principal amount of $1,.000,000 and a 9 percent annual…

A: Original Principal Amount = $1,000,000 Annual coupon Rate = 9% Inflation over the first six months =…

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: On January 1st, 2021, an investor enters into a 9-month forward contract on an asset. In February,…

A: With continuous compounded risk free rate (r), period (n) and current value (S0), the no arbitrage…

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: Suppose for its deposit accounts Simplii Financial is offering to pay interest at a rate of 0.25%…

A: Effective interest rates is the interest rate which is the nominal interest after making adjustments…

Q: A loan payment of $3200 was due 3 months ago, and another payment of $1800 is due in 6 months from…

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: security pays the holder $100 per month. What is the present value of the security if the next…

A: A future sum's present value is the current estimation of its worth. Investors determine the present…

Q: A firm sells the same material with two separate payment plans. 1. According to the 1st payment…

A: Option with lower total present value of future payment will be selected. Present value of monthly…

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: An air conditioner is for sale at P20,000 in cash or on terms, P1,650 each month for the next 18…

A: Given,  The sale price is P20,000. Payment is P1650 for each month is 6% compounded monthly Number…

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…