Belinda purchased a 120-day $200,000 bank bill (at a simple interest rate) on 14 March 2022. The purchase price was $197,000. She sold this bank bill on 22 April 2022. (b) Assume that Belinda sold this bank bill at a price of $197,800 and deposited all sale proceeds into an account to earn a simple interest rate of 3.41% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this 120-day investment? O a. 0.03801 O b. 0.03575 O c. 0.03546 O d. 0.03518

Belinda purchased a 120-day $200,000 bank bill (at a simple interest rate) on 14 March 2022. The purchase price was $197,000. She sold this bank bill on 22 April 2022. (b) Assume that Belinda sold this bank bill at a price of $197,800 and deposited all sale proceeds into an account to earn a simple interest rate of 3.41% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this 120-day investment? O a. 0.03801 O b. 0.03575 O c. 0.03546 O d. 0.03518

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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2. Ms. Fatima sold to Ms. Ruqaiya OMR 60,000 worth of goods on the 15th of April 2022 by accepting a 150 days, 6% interest bearing note. Both Ms. Fatima & Ms. Ruqaiya need your help in understanding how and in what way the notes receivable and the payables should be treated. Provide them with the required help by showing how the transactions would be treated in the books of both parties in the following situations: a) When the notes are accepted. b) On the maturity date, the note is honored. c) Suppose Ms. Fathima prepared final accounts on the 25th of July 2022 d) Following the above situation, the bill is met on maturity. e) The note was dishonored on the maturity date by Ms. Ruqaiya.
Assume that your grandmother has sold her house on 31.12.2020. The house was partially paid for with a bond, issued on the day, which is secured by a mortgage on the house. The face value of the bond is ISK. 20,000,000. The bond is an annuity loan for 40 years and bears interest of 7.4% p.a. The due date is once a year and is December 31. Now your grandmother will soon have to file her taxes for the year 2023. She has therefore asked you to calculate what her interest income from the bond was in 2023. What was her interest income in 2023?
Arnold purchased a note from Sylvester for $4300. The note will mature in 240 days, and bears 0.065 of simple interest rate. But 120 days after Arnold purchased the note, his friend Bruce convinced him to sell him the note for $4478.87. Bruce keeps the note until maturity. (a) What is the simple interest rate for Arnold in these transactions? (b) What is the simple interest rate for Sylvester in these transactions? (c) What is the simple interest rate for Bruce in these transactions?
Sally purchased a home in Georgia for $167,500. She took out a mortgage for 80% of the purchase price at a 7.75% interest rate and put up a 20% down payment. The sale closed on March 16. What is the total dollar amount of the prepaid interest? Select one: a. $452.08 b. $461.55 C. $455.23 d. $576.94
Aina received a 180-day promissory note worth RM4500 at 8.5% simple interest on 14th August 2015 from Sarah. However, on 24th November 2015 Aina sold the note to a bank at the discount rate of 7.5%. Find the discount term.
Kia deposited $1,300, at the BEGINNING of each year for 26 years in a credit union account. If the account paid 8% interest, compounded annually, use the appropriate formula to find the future value of her account. $95,037.72$103,940.74 $112,256.00$113,556.00
Arnold purchased a note from Sylvester for $4300. The note will mature in 240 days, and bears 0.065 of simple interest rate. But 120 days after Arnold purchased the note, his friend Bruce convinced him to sell him the note for $4478.87. Bruce keeps the note until maturity. (a) What is the simple interest rate for Arnold in these transactions? (b) What is the simple interest rate for Sylvester in these transactions? (c) What is the simple interest rate for Bruce in these transactions? Submit Answer
1. On October 31, 2019, Strongman Samson borrowed P100,000.00 from Pretty Delilah subject to an interest rate of 6% per year until full payment. If Samson is able to pay both the principal and the interest on March 10, 2020, how much should Samson prepare in order to satisfy his agreement with Delilah?
Sally purchased a home in Georgia for $167,500. She took out a mortgage for 80% of the purchase price at a 7.75% interest rate and put up a 20% down payment. The sale closed on March 16. What is the total dollar amount of the prepaid interest? Select one: a. $452.08 b. $461.55 C. $455.23 d. $576.94
(c) Pearl Inc. loans money to John Kruk Corporation in the amount of $832,000. Pearl accepts an 8% note due in 7 years with interest payable semiannually. After 2 years (and receipt of interest for 2 years), Pearl needs money and therefore sells the note to Chicago National Bank, which demands interest on the note of 10% compounded semiannually. What is the Amount received on sale of note LINK TO TEXT LINK TO TEXT LINK TO TEXT
21. Rica obtained a 3-year P40 000 discounted loan at 2% simple interest for her online business. Find the discount. 22. Rica obtained a 3-year P40 000 discounted loan at 2% simple interest for her online business. Find the amount of money Rica received. 23. Rica obtained a 3-year P40 000 discounted loan at 2% simple interest for her online business. Find the true interest rate.
Bruno received a one-year P375,000 note bearing annual interest of 8% from a customer. after holding the notes for six months, Bruno discounted the note at Special bank at an effective interest rate of 10%Question: if the discounting is treated as a borrowing what amount of loss on discounting should Bruno recognize?a. 20,250b. NONEc. 5,250d. 9,750

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