The promissory note with a face value of 500,000 has 45 days until maturity. If the relevant yield is 7% then what is the current price of this promissory note? A promissory note with a face value of P500000 has 45 days until maturity. If therelevant yield is 7% then what is the currentprice of this promissory note? *Your answer

Promissory notes are a form or type of financial instrument in which one party makes promises to…

Answered: The promissory note with a face value…

The promissory note with a face value of 500,000 has 45 days until maturity. If the relevant yield is 7% then what is the current price of this promissory note?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

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The promissory note with a face value of 500,000 has 45 days until maturity. If the relevant yield is 7% then what is the current price of this promissory note?

A promissory note with a face value of P500
000 has 45 days until maturity. If the
relevant yield is 7% then what is the current
price of this promissory note? *
Your answer

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