Bank Oman issued certificate of deposit with face value 60000 OMR and 270 days to maturity.Calculate the maturity value of this CD if rate of interest is 6% Select one: a. 58600 OMR b. 63100 OMP c. 62663 OMR d. None of these

Bank Oman issued certificate of deposit with face value 60000 OMR and 270 days to maturity.Calculate the maturity value of this CD if rate of interest is 6% Select one: a. 58600 OMR b. 63100 OMP c. 62663 OMR d. None of these

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

See similar textbooks

Related questions

Q: A bank sells a “three against six” $3,000,000 FRA for a three-month period beginning three months…

A: Forward contract refers to the contract that is made between the two parties for buying and selling…

Q: 1. A bank deposit of P10, 000 has a real value of P12,136.30 after 3 years. What is its actual…

A: Real value after 3 years = P 12,136.30 Inflation rate = 5% Period = 3 Years

Q: The maturity value of a $491000, 76-day, 7.5% note receivable is (two decimals):

A: A note receivable is a financial instrument which shows the amount owed by the borrower to the…

Q: A $2600 certificate of deposit held for 88 days was worth $2635.59. What simple interest rate was…

A: The present value and the future value of a certificate of deposit are known. The simple rate of…

Q: Fill in the missing information. 1. Missing Dates: Encode the date in this format: mm/dd 2.…

A: The rate at which interest is paid by the borrower on loan amount is known as interest rate.…

Q: A forward rate agreement (FRA) is

A: Meaning of FRA i.e., Foreign Rate Agreement Forward rate agreement is a contract to determine the…

Q: Problem 11- (Alg Solve for maturity value, discount period, bank discount, and proceeds. Assume a…

A: Ordinary interest rate is the method of calculating the interest charged on the loan, based on a 360…

Q: An Indian bank displayed the spot rate, 30 days and 60 days forward rates for INR/USD as follows:…

A: The forward rate will be the spot rate plus the 60-day forward premium

Q: The following interest-bearing promissory note was discounted at a bank by the payee before…

A: The objective of the question is to calculate the proceeds from the discounting of a promissory note…

Q: On October 1, 2021, Home Company issued to Security Bank a P6,000,000, 8-month, noninterest-bearing…

A: Bonds- The note/bond issuer offers collateral as security in this type of transaction. Such…

Q: On June 3, 20X1, Alaska State Company received a $6,600, 45-day, 12 percent note from Samuel Adams,…

A: The promissory note is a legal document issued by the borrower to raise money. The note requires…

Q: Question A Suppose the annualized LIBOR3 is 4.23% and the annualized LIBOR6 is 5.97%. What is the…

A: As per the given information:The forward rate for a LIBOR3 (annualized) deposit is to be placed…

Q: Suppose the face amount of the notevwas adjusted to include nonbearing interest note andc12% is yhr…

A: To DateParticularsDebit($)Credit($)Oct. 1, 2021Cash A/c Dr.26880000Discount on notes payable A/c…

Q: 12. On November 1, 20x1, Forgive Co. discounted a P1,000,000, 90-day, 12% note, dated September 15,…

A: The amount owing to a corporation for goods or services delivered or used but not yet paid for by…

Q: A 120-day promissory note dated 12 January 2020 offers a simple interest rate of 2.57%. By using…

A: Here, Maturity Value of Noe is RM 8,571.62 Net Proceeds from Note is RM 8,534.48 Simple Interest…

Q: On 10 July 2019 Corona Ltd enters into an arrangement with a Barclays bank in US to borrow US$900…

A: Initial Recognition and Measurement All foreign currency transaction should be recognized using the…

Q: Required: A bank sells a "three against six" $3,000,000 FRA for a three-month period beginning three…

A: Forward rate agreement refers to the contract which is said as over-the-counter that is made between…

Q: The maturity value of a $802,000, 88 day, 10% note receivable is (two decimals):

A: Note receivable is the note which shows that a particular amount along with interest is due from a…

Q: A bank sets the loan rate on a prospective loan at 14%. This consists of a 12% base rate and a 2%…

A: A loan is a financial aid which is given by one party to another party. This transaction can take…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: A certificate of deposit(CD) is a type of savings account that offers a higher interest rate than a…

Q: The maturity value of a $586000, 168-day, 7.3% note receivable is (two decimals):

A: Interest on Note = Face value of notes x rate of interest x no. of days / 365 = $586000 x 7.3% x…

Q: Partial payments are made on the dates indicated. Use the United States rule to determine the…

A: An amount borrowed is partly compensated by two intermittent payments. The balance to be paid on the…

Q: The following interest-bearing promissory note was discounted at a bank by the payee before…

A: The objective of the question is to calculate the proceeds from the discounting of a promissory note…

Q: 48 Assume that Oman Oil Marketing Company has credit sales of OMR 100,000 in 2019, of which…

A: the journal entries are prepared to keep the record of day to day transactions of the business.

Q: Required: A bank sells a "three against six" $3,000,000 FRA for a three-month period beginning three…

A: A Forward Rate Agreement (FRA) is a financial contract between two parties to fix a future interest…

Q: Problem 3 - Determine the maturity date and interest for a notes receivable |Amplify Bank…

A: let's understand some some basics Notes receivable are written promissory notes that give the…

Q: Prepare the relevant journal entries that are required in Corona Ltd's books for 10 July 2019 and 30…

A: As per International Accounting Standards, a Financial Liability shall be initially recognized at…

Q: Analyzing Interest-Bearing and Noninterest-Bearing Notes Consider the following three separate…

A: A note payable is a form of a promissory note. On this note, one party has promised to pay the other…

Q: f the interest that 6000 TL will bring in 3 months over 21% interest rate is brought by the same…

A: Simple Interest: When at the time of returning the loan to the bank, we have to pay back an amount…

Q: in Muscat Securities Market which will mature in October 30, 2020. The CD pays 8 % interest rate.…

A: The question is related to Interest on CD. The details are given.

Q: None

A: For the maturity dates, we have to count from the date of note until we complete the term. In…

Q: Items EURUSO USE/MYR USD/SGD SPOT (28 october 201) 1.1017/18 42200/ 1 MONTH 437/492 74/119 2 MONTH…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Compute interest and find the maturity date for the following notes. Hint: Omit the date the note is…

A: Note payable also called promissory note. It is a legal instrument in which one party promises in…

Q: K. What is the carrying value of the note received fi Company B on October 1, 2020?

A: Note receivable: It is a written promise. The promise is for receiving specific amount of cash on…

Q: Instructions: Fill in the missing information. 1. Missing Dates: Encode the date in this format:…

A: The concept of time value of money states that value of money at present is more than that from…

Q: A bank is considering using a “three against six” $2,000,000 FRA to cover its potential loss. The…

A: In this scenario, the bank is using a Forward Rate Agreement (FRA) to hedge against the risk of…

Question

Bank Oman issued certificate of deposit with face value 60000 OMR and 270 days to maturity.Calculate the maturity value of this CD if rate of interest is 6%

Select one:

a. 58600 OMR

b. 63100 OMP

c. 62663 OMR

d. None of these

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1Basic Information

VIEW

Step 2 Solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A bank is considering using a “three against six” $2,000,000 FRA to cover its potential loss. The purpose of the FRA is to cover the interest rate risk caused by the maturity mismatch from having made a six-month Eurodollar loan and having accepted a three-month Eurodollar deposit. The agreement rate with the buyer is 4.6%. There are actually 92 days in the three-month FRA period. Which one of following statements is correct? Group of answer choices To hedge the risk caused by maturity mismatch, the bank could take the buyer’s position if it uses the Euro-Dollar Interest Rate Futures instead. To hedge the loss caused by maturity mismatch, the bank should be a seller of the FRA. If the settlement rate is 4.8% three months from today, then the buyer pays the seller. If the settlement rate is 4.8% three months from today, then the FRA is worth $1009.84 Without the FRA, the bank will lose if the market interest rate drops at the end of three months.
Typed plz and Asap thanks
A bank charges 10% bank discount on short-term loans. Find the maturity value of the non-interest bearing note given by the bank, if the borrower receives Php 3,000 from July 5 to September 19, 2012. Select the correct response: Php 3,305.32 Php 3,490.89 Php 1,616.28 Php 3,064.70
The following interest-bearing promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate the missing information. (Round dollars to the nearest cent.) Face Value Interest Rate (%) Date of Note Term of Note (days) Maturity Date Maturity Value (in $) $750 141 June 9 135 ---Select--- * $ 794.96 2 Date of Discount Discount Period (days) Sept. 5 × Discount Rate (%) 15.5 $ tA Proceeds (in $)
The Deposit value on 10/1/20 is 4X. Not 8X.
25. The following interest-bearing promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate the missing information. (Round dollars to the nearest cent.) FaceValue InterestRate (%) Date ofNote Term ofNote (days) MaturityDate MaturityValue(in $) $2,200 12 Mar. 7 80 $ Date ofDiscount DiscountPeriod (days) DiscountRate (%) Proceeds(in $) Apr. 15 19 $
A bank bill with a face value of $100,000 was issued today and it matures in 60 days' time. If interest rates are 6% p.a. what amount of interest is earned if the bill is held until maturity? a. $99,023.33 b. $1,457.88 C. $976.67 Od. $6,000.00 Oe. $78,260.87
2. On 30 December 2020, Salina received a 90-day promissory note with a simple interest rate of 4.5%. She discounted the note after 32 days with a bank discount rate of 2.33%. The proceeds received was RM10,784.36. Using Banker's Rule. No use excel. Find: a) the maturity date of the note. b) the maturity value of the note.
pot (28 October 2018) 1.1017/18 4.2200/699 1.3917/87 1 Month 473/492 74/119 106/138 2 Month 103/106 152/202 225/285 3 Month -187/+187 278/228 36/42 The following rates are quoted by banks as at 28 October 2018.Based on the above rates, calculate the following (assume no margins or charges areimposed and all exchange controls/regulations are complied with): b. Quoting bank buys SGD/MYR fixed three month delivery.
The rates offered by a bank on deposits between $10,000 and $24,999 are shown in the following table: Term 180 to 269 days 270 to 364 days Rate. 3.15% 3.45% How much more will an investor earn from a $10,000 investment in a 364-day GIC than from two consecutive 182-day GICS? Assume that the interest rate on 180- to 269-day GICS will be the same on the renewal date as it is today. Remember that both the principal and the interest from the first 182-day GIC can be invested in the second 182-day GIC. (Use 365 days a year. Do not round the intermediate calculations. Round your final answer to 2 decimal places.) An investor will earn $ more
Required: A bank sells a "three against six" $3,000,000 FRA for a three-month period beginning three months from today and ending six months from today. The purpose of the FRA is to cover the interest rate risk caused by the maturity mismatch from having made a three-month Eurodollar loan and having accepted a six-month Eurodollar deposit. The agreement rate with the buyer is 5.57 percent. There are actually 92 days in the three-month FRA period. Assume that three months from today the settlement rate is 4.910 percent. Determine how much the FRA is worth and who pays who-the buyer pays the seller, or the seller pays the buyer. Note: Round your intermediate calculations to 6 decimal places. Round your answer to 2 decimal places. Assume 360 days in a year. the absolute value of the FRA
please answer both subparts

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS