A five-year, $3000 note bearing interest at 8% compounded annually was discounted at 12% compounded semi-annuallyyielding proceeds of $4000.03. How many months before the due date was the discount date?The discount date was months before the due date.(Round to the nearest month.)

Notes are financial instruments that promise to pay the specified amount on the maturity of the…

Answered: A five-year, $3000 note bearing…

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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The face value of a nine-month, 6.1% note dated April 30, 2006, is $589.09. Determine each of the items listed below. Ignore any grace period. (a) the legal due date (c) the amount of interest (b) the interest period (in days) (d) the maturity value (a) The legal due date is
The proceeds of a $9000, 8 year promissory note earning 5% compounded semi-annually were 10,475. How many years before maturity date was note sold if the discounted rate was 7.2% compounded annually?
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When discounted to yield 8.2% compounded quarterly, a $4,200 six-year promissory note bearing interest at 9.5% compounded semiannually was priced at $5,406.33. How long after the issue date did the discounting take place? (Do not round the intermediate calculations. Round your answer to the nearest month.) The discounting took place: ? year(s) and:? month(s) after issue.
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Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eightyears. What is the amount of the current portion of the noncurrent note payable due in the second year?A. $800B. $1,000C. $500D. nothing, since this is a noncurrent note payable
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A five-year, $3000 note bearing interest at 8% compounded annually was discounted at 12% compounded semi-an yielding proceeds of $4000.03. How many months before the due date was the discount date? The discount date was months before the due date.