Calculate the effective annual interest rate for the following: Required: a. A 3-month T-bill selling at $97,600 with par value $100,000. b. A 11% coupon bond selling at par and paying coupons semiannually. Complete this question by entering your answers in the tabs below. Required A Required B A 3-month T-bill selling at $97,600 with par value $100,000. Note: Round your answer to 2 decimal places. Effective annual rate %
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- Please do both correctly, I'll rate the answerQuestion:(i) A $10,000 bond is purchased for $9600 and has a bond rate of 6% per year payable semiannually for 2 years. What is the interest rate?(ii) You borrow 35,000 for 10 years at 10% per year compounded monthly. After making 24 payments you decide to pay the loan off. What's that payoff amount? Note:- please dont use pen paperPlease do both correctly, I'll rate the answer Question: (i) A $10,000 bond is purchased for $9600 and has a bond rate of 6% per year payable semiannually for 2 years. What is the interest rate? (ii) You borrow 35,000 for 10 years at 10% per year compounded monthly. After making 24 payments you decide to pay the loan off. What's that payoff amount?Dinero Bank offers you a $39,000, 8-year term loan at 7 percent annual interest. Required: What will your annual loan payment be? (Do not round your intermediate calculations.) $7,475.82 $6,531.24 $6,988.43 $6,786.58 $6,280.40
- A borrower has two alternatives for a loan: (1) issue a $480,000, 60-day, 8% note or (2) issue a $480,000, 60-day note that the creditor discounts at 8%. (Assume a 360-day year is used for interest calculations.) Required: a. Calculate the amount of the interest expense for each option.$fill in the blank 1 for alternative (1)$fill in the blank 2 for alternative (2) b. Determine the proceeds received by the borrower in each situation. Alternative 1 $fill in the blank 3 proceeds Alternative 2 $fill in the blank 4 proceedsA borrower has two alternatives for a loan: (1) issue a $300,000, 120-day, 8% note or (2) issue a $300,000, 120-day note that the creditor discounts at 8%. Assume a 360-day year. a. Calculate the amount of the interest expense for each option.$ for each alternative. b. Determine the proceeds received by the borrower in each situation. (1) $300,000, 120-day, 8% interest-bearing note $ (2) $300,000, 120-day note discounted at 8% $ c. Alternative is more favorable to the borrower because the borrower .Find the interest on the following loan. $1850 at 8.5% for months 9 (Round to the nearest cent as needed.) 2.Find the interest on the following loan. $5362 at 6%; loan made on August 14 and due December 16 The simple interest for this loan is $. (Round to the nearest cent as needed.) 3. For the given corporate bond, whose annual simple interest rate is provided, find the semiannual simple interest payment and the total interest earned over the life of the bond. Assume 365 days in a year. $5300 Company A, 30-year bond,5.722% The semiannual interest on the corporate bond is $. (Round to the nearest cent as needed.)
- Compute the maturity value for each of the following notes: Required: 1. A note payable with a face amount of $31,000, dated June 15, 20X1, due in three months, bearing interest at 4 percent. 2. A note payable with a face amount of $25,000, dated May 5, 20X1, due in 30 days, bearing interest at 6 percent. Complete this question by entering your answers in the tabs below. Required 1 Required 2 A note payable with a face amount of $31,000, dated June 15, 20X1, due in three months, bearing interest at 4 percent. (Round your "Interest rate" answer to two decimal places. i.e., 1% should be entered as 0.01.) Fraction of Principal x Interest Rate x Interest Year Maturity ValueA borrower has two alternatives for a loan: (1) issue a $390,000, 120-day, 8% note or (2) issue a $390,000, 120-day note that the creditor discounts at 8%. Assume a 360-day year. a. Compute the amount of the interest expense for each option.fill in the blank 1 of 1$ for each alternative. b. Determine the proceeds received by the borrower in each situation. Line Item Description Amount (1) $390,000, 120-day, 8% interest-bearing note $fill in the blank 2 (2) $390,000, 120-day note discounted at 8% $fill in the blank 3You were offered either a simple interest note or a simple discount note with the following terms: $30,878 at 6% for 36 months. a. Calculate the effective interest rate. Note: Do not round intermediate calculations. Round your final answer to the nearest tenth percent. Effective interest rate % b. Based on the effective interest rate, which would you choose? simple discount note simple interest note
- You apply for a loan of $79,000 with the following terms: a seven-year loan with semi-annual payments of $7,700 (at the end of period payments). Based on this information, what is the APR of the loan Bank Y offers you? 8.74% 8.42% 8.57% 9.02% 8.89%Given a $5,000 loan at 8% for 90 days, compare the interest accrued using the standard method (365 days) and the bankers' rule. Then give an example of when the bankers rule is in your favor.You were offered either a simple interest note or a simple discount note with the following terms: $37,703 at 8% for 12 months. a. Calculate the effective interest rate. (Do not round intermediate calculations. Round your final answer to the nearest tenth percent.) b. Based on the effective interest rate, which would you choose? Simple discount note or simple interest note