KThe U.S. government borrows money by selling Treasury bills. Treasury bills are discounted notes issued by the U.S. government. OnJune 4, 2003, Kris Greenhalgh purchased a 155-day, $4500 U.S. Treasury bill at a 4.34% discount. On the date of maturity Kris received$4500. Complete parts a) through d).Click here for an explanation of treasury bills.Click the icon to view the table of maturity dates.a) What is the date of maturity of the Treasury bill?The date of maturity of the Treasury bill is2003

Date of issue of the T-Bills = June 4, 2003Period of the t-bills = 155 days

Answered: The U.S. government borrows money by…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 5QE

See similar textbooks

Similar questions

Treasure bills (T-bills) are used by the U.S. Treasury Department to finance the public debt. Suppose a 180-day T-bill with a maturity value of $10,000 is purchased for $9,885.56. What annual simple interest rate is earned on this T-bill? (Answer as a percentage rounded to three decimal places.) I = PRT, A = P+I
A. On December 2020, Al NASR Islamic bank buys a government bond worth $1000mln by issuing new money. KSA government (seller of the Bond) deposited the proceeds with AL HILAL bank noting that reserve - requirement ratio is equal to 10 percent of deposits. What is the engine of the process of money creation? Explain its relationship with the reserve requirement ratio. Calculate and explain the balance sheet of the banking system.
Suppose the Bangladesh Bank purchases a government bond from you for TK 10,000. a. Suppose you deposit the TK 10,000 in First Security Bank. Show this transaction on First Security Bank's T-account. 02 b. Suppose the reserve requirement is 20 percent. Show First Security Bank's T-account if they loan out as much as they can. 02 c. At this point, how much money has been created from the Bangladesh Bank’s policy action?
On July 1, 2023, Mifflin Company borrowed 280,000 euros from a foreign lender, evidenced by an interest-bearing note due on July 1, 2024. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows: Date Amount July 1, 2023 (date borrowed) December 31, 2023 (Mifflin's year-end) $ 265,000 258,800 245,000 July 1, 2024 (date repaid) In Its 2024 Income statement, what amount should Mifflin include as a foreign exchange gain or loss on the note? Multiple Choice $13,800 gain $13,800 loss $20,000 gain $20,000 loss
Cullumber Inc. assigns $4728000 of its accounts receivables as collateral for a $3.30 million loan with a bank. The bank assesses a 3% finance charge on the loan amount and charges interest on the note at 6%. What would be the journal entry to record this transaction? O Debit Cash for $3201000, debit Interest Expense for $99000, and credit Accounts Receivable for $3300000 O Debit Cash for $3003000, debit Interest Expense for $297000, and credit Notes Payable for $3300000 O Debit Cash for $1890800, debit Interest Expense for $99000, debit Due from Bank for $1428000, and credit Accounts Receivable for $4728000 O Debit Cash for $3201000, debit Interest Expense for $99000, and credit Notes Payable for $3300000
Descriptors are provided below for six situations involving notes receivable being discounted at a bank. In each case, the maturity date of the note is December 31, 2024, and the principal and interest are due at maturity. For each situation, determine the proceeds received from the bank on discounting the note. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. 1. $ 60,000 3/31/2024 6% 6/30/2024 8% _____ 2. 60,000 3/31/2024 6% 9/30/2024 8% _____ 3. 60,000 3/31/2024 6% 9/30/2024 12% ______ 4. 85,000 6/30/2024 4% 10/31/2024 8% ______ 5. 85,000 6/30/2024 4% 10/31/2024 12% _____ 6. 85,000 6/30/2024 4% 11/30/2024 8% ______
Central Bank of Oman on behalf of the Oman Government raised OMR 13 million by way of treasury bills on 16th September 2020. Which of the following is not true about Treasury Bills? a. Treasury Bills can be issued by companies having good credit rating b. Treasury Bills are short-term borrowing instruments c. Treasury Bill are issued at discount to the face value on maturity d. Treasury Bill have greater liquidity than other bills
Prepare entries for interest-bearing notes. E10.1 (LO 1), AP C.S. Lewis Company had the following transactions involving notes payable. July 1, 2022 Nov. 1, 2022 Dec. 31, 2022 Feb. 1, 2023 Apr. 1, 2023 Instructions Borrows $50,000 from First National Bank by signing a 9-month, 8% note. Borrows $60,000 from Lyon County State Bank by signing a 3-month, 6% note. Prepares annual adjusting entries. Pays principal and interest to Lyon County State Bank. Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. Prepare entries for interest-bearing notes.
Please help me
Descriptors are provided below for six situations involving notes receivable being discounted at a bank. In each case, the maturity date of the note is December 31, 2024, and the principal and interest are due at maturity. For each situation, determine the proceeds received from the bank on discounting the note. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Note Note Face Value Date of Note Interest Rate 1 $ 90,000 3/31/2024 Date Discounted 8% 6/30/2024 Discount Rate Proceeds Received 10% $ 80,280 2 90,000 3/31/2024 8% 9/30/2024 10% 93,150 3 90,000 3/31/2024 8% 9/30/2024 12% 92,700 4 180,000 6/30/2024 6% 10/31/2024 10% 5 180,000 6/30/2024 6% 10/31/2024 12% 6 180,000 6/30/2024 6% 11/30/2024 10%
A bank is short of cash to meet Bank of Ghana reserve requirement overnight and it is therefore selling treasury bills of face value of GHS250 million to a discount house at a price of GHS249.82 million. The bank agrees to repurchase the T. Bills back at GHS250 million the next day. Calculate the repurchase (REPO) rate p.a. on the transaction.
narubhai

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Reporting, Financial Statement Analysis…

Finance

ISBN:

9781285190907

Author:

James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:

Cengage Learning