$10,000 face value T- bill has a 2.65 percent discount quote and 180-day maturity. What is the price of the T - bill? S 9,862.50 $9,864.36 $9,869.23 $9,867.50
Q: Calvani, Inc., has a cash cycle of 43.5 days, an operating cycle of 63 days, and an inventory period…
A: Variables in the question:Cash cycle=43.5 daysOperating cycle=63 daysInventory period=27 days Cost…
Q: The owner of a number of gas stations is considering installing coffee machines in his gas stations.…
A: Profitability index (PI) is the ratio of the present value of operating cash inflows to the present…
Q: (Annuity interest rate) You've been offered a loan of $25,000, which you will have to repay in 5…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: 1st: EAR= (1+r/m)™ — 1 EPR=(1+EAR)(1/s) — 1 2nd: Or: EPR = (1+r/m)(m/s)– 1
A:  Semi-annual rate compounded semi annually" data-mce-style="display: inline-table;…
Q: You are required to estimate the distance to default using the Merton model. What are/is the main…
A: The Merton Model, also known as the Merton Structural Credit Model or Merton's Model, is a financial…
Q: paying semiannual interest is reported as having an ask price of
A: A bond is a financial instrument issued in the debt market by large business firms and governments…
Q: The risky portfolio expected return and standard deviation is 14% and 20%, respectively. The risk…
A: Risk Aversion Coefficient (A): It measures an investor's aversion to risk. The higher the value of…
Q: Your company has a policy to use long-term debt to finance inventory and receivables. This is a…
A: When the working capital requirements are financed through long-term debt then it depicts that the…
Q: Suppose you pay $9,400 for a $10,000 par Treasury bill maturing in 6 months. What is the effective…
A: The time value of money means the present available money is worth more than the future money.…
Q: (Bond valuation relationships) Arizona Public Utilities issued a bond that pays $80 in interest,…
A: The price of a bond is equal to the present value of coupon payments and the face value of the bond.…
Q: Cooperton Mining just announced it will cut its dividend from $4.12 to $2.57 per share and use the…
A: Accroding to Gordon's growth model ,Po = wherePo =price of shareD1 = expected dividend r = Required…
Q: 7. Herbert Investments wants to prepare a portfolio comprising three stocks. They would like to earn…
A: let the weights be w1, w2 and w3as per the question, (w1*0.07) + (w2*0.09) + (w3*0.1) >= 0.09risk…
Q: Keto Grocery Store sells 400 gallons of milk each month. The average on-hand inventory is 50…
A: Inventory turnover ratio measures how efficiently the firm uses its inventory. It is calculated by…
Q: A proposed nuclear power plant will cost $2.9 billion to build and then will produce cash flows of…
A: Net present value (NPV) is the difference between present value of all cash inflows and initial…
Q: Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they…
A: Npv is also known as Net present value. It is a capital budegting technique which helps in decision…
Q: The Carrolls have $300,000 in a bank. If they get 5% compounded monthly and withdraw $20,000 at the…
A: An annuity is a method of withdrawal of a specific amount on a specific date for a particular period…
Q: Suppose the MARR is 12%. Use the following table to answer the question-The IRR on the CMS…
A: Internal rate of return (IRR) of an investment is the rate of return at which the net present value…
Q: Your goal is to have $12,500 in your bank account by the end of eight years. If the interest rate…
A: Future Value = fv = $12,500Time = t = 8 YearsInterest Rate = r = 8%Annual Deposit type = at the end
Q: what is the required rate of return?
A: The non-constant dividend growth model is a technique for evaluating the intrinsic stock value. It…
Q: Excellent Yachting is considering acquiring Turquoise Tours. Management believes Turquoise Tours can…
A: Present value is a current value of future value which is received in near future at specified…
Q: This morning, you borrowed $14,700 at an APR of 8.9 percent. If you repay the loan in one lump sum…
A: A loan refers to an amount that a lender provides to a borrower on the promise that they return the…
Q: Given the information below, determine the free cash flow for 2014. Income Statement (In Thousands)…
A: Free cash flow for the firm refers to the money that the company generates throughout the period…
Q: Professor's Annulty Corp. offers a lifetime annulty to retiring professors. For a lump payment today…
A: An annuity refers to a series of periodic payments that are provided in exchange for a lump sum…
Q: A loan payment of $1124 was due 49 days ago and another payment of $2664 is due 45 days from now.…
A: The present value concept refers to the current worth of a future sum of money, considering the time…
Q: Suppose that the current one-year zero-coupon rate is 2.5% and that the expected one-year rate…
A: The expectations theory refers to the theory where the long-term yield of the bond is equal to the…
Q: (1) Is this put option in-the-money? ii) Under what circumstances will the option be exercised? (iv)…
A: A Money Market Hedge is a financial strategy employed by businesses and individuals to manage…
Q: A firm's current profits are $700,000. These profits are expected to grow indefinitely at a constant…
A: Variables in the question:Current profit=$700000Annual growth rate =3%Opportunity cost of funds=5%
Q: Suppose you have $28,000 to invest. You're considering Miller-Moore Equine Enterprises (MMEE), which…
A: A put option is a financial derivative that gives the holder the right, but not the obligation, to…
Q: The following graph shows the value of a stock's dividends over time. The stock's current dividend…
A: The current dividend (D0) is $1.The growth rate is 3.50% per year.The required rate of return is…
Q: 2. (SHOW FILLED-OUT FORMULAS!!!) Assuming a 7.5% interest rate compounded monthly, if someone wanted…
A: The per-month investment refers to the amount of investment kept aside every month from the income…
Q: You bought a stock for $29 per share one year ago and the share price is now $30. There are 1.5…
A: Dividend yield is the amount which is received by the investor due to purchase of stock. It includes…
Q: John Smith has a credit card that charges 15% annual interest on the monthly average daily balance…
A: Average Daily BalanceThe average daily balance is one of the methods used by credit companies to…
Q: Based on this information, Robert's forecast of PAMC's growth rate in earnings and dividends should…
A: Net income = 1341300Book value of equity = 10497500Return on equity (ROE)= Net income/Book value of…
Q: You have just invested USD 1M in the "carry trade". (you have borrowed USD 1M and you have invested…
A: Here, Amount Borrowed in $ $ 1,000,000.00Spot Exchange Rate NOK/$8Exchange Rate one year…
Q: If the market value of a capital improvement project is $1,447,024, and the bank will lend you 87.9%…
A: Capital is a term for financial asset, such as funds held in deposit accounts and/or funds obtained…
Q: Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the…
A: Expected return refers to the probable return of each asset considered with the probability under…
Q: John takes out a 5 year loan for $10000 at 8% interest compounded monthly. Calculate his monthly…
A: The annuity is an amount that is paid back to the loan amount which consists of interest payments…
Q: There is a bond that has a quoted price of $1,068.18 and a par value of $1,000. The coupon rate is…
A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…
Q: A 20-year bond pays annual coupons of $65, has a par value of $1,000, and is selling for $725. If…
A: Bond price refers to the market value at which a bond can be bought and sold. It is determined by…
Q: STEM ontario received X dollars in a grant today and the same amount in a year from today. the grant…
A: PMT = $42,500Interest rate = 6.5%
Q: "The risk-free security has a beta equal to one; more than one. one; less than one. less than zero;…
A: Beta is a measure for analyzing the volatility of a portfolio in relation to the overall market.
Q: Jason found two feasible options for an apartment to rent for the next 2 years. Option A requires…
A: The present value of an annuity is the current worth of a series of future cash flows, discounted at…
Q: A&T, Inc. paid an annual dividend of $1.47 per share last month. The company is planning on paying…
A: The dividend discount model states that value of a stock now is the present value of all its future…
Q: eal risk - free rate is 3%. Inflation is expected to be 4% this year, 3% next year, and then 4.5%…
A: Nominal interest rate on treasury securities depends on the risk free rate, inflation and maturity…
Q: Bob paid $10,000 in net premium for universal life insurance policy and took withdrawal of $4,000…
A: In universal life insurance there is life insurance and also there is some cash value of life…
Q: hat's the interest rate of a 5 - year, annual $5, 100 annuity with present value of $ 20,500? (Use a…
A: A sequence of equal payments is known as an annuity. It is a type of financial product that offers a…
Q: You own a wholesale plumbing supply store. The store currently generates revenues of $1.01 million…
A: A company entity's entire value or financial worth is generally called as its "business worth." This…
Q: Suppose that you could invest in the following projects but have only $29,680 to invest. How would…
A: NPV is the most important and commonly used method of selection of project based on time value of…
Q: A Treasury bond is priced at 103:08. It was issued exactly 12 years ago and is due to mature exactly…
A: Bond refers to the instrument that is issued by a company for raising debt capital from investors…
Q: 13. Bond listings and yield spreads The following bond list is from the business section of a…
A: A bond is a security that offers a fixed payment till its maturity with the principal repayment at…
Manshukh
Don't upload image please
Step by step
Solved in 3 steps with 2 images
- A PRICE TAG OF P2,600.00 IS PAYABLE IN 60 DAYS BUT IF PAID WITHIN 30 DAYS IT WILL HAVE A 4% DISCOUNT. FIND THE RATE OF INTEREST. O a. 50% O b. 60% О с. O d. 55% 53%A PRICE TAG OF P2,600.00 IS PAYABLE IN 60 DAYS BUT IF PAID WITHIN 30 DAYS IT WILL HAVE A 4% DISCOUNT. FIND THE RATE OF INTEREST. O a. 53% O b. 60% O c. 55% O d. 50%The discount yield of a 6-month T-bill with a face value of $1,000 is 4%. What is its price? $979.78 $984.22 $989.43 $993.51
- Question 3 A T-bill that matures in 120 days has a discount rate (yield) of 7%. If the bill has a $1000 face value, the price of this bill is O $1000 O$987.8 O $1001.2 $976.67List Price: P100,000 Trade Discount: 20%, 10% What is the Invoice Price?Question: You have a customer who has a 620 fico score and their preferred product requires you to add 1/8th percent to the interest rate of 6 3/4% (30 year fixed rate). What is the P&I payment for this customer if they are putting 10% down on a sales price of $195,000? a. $1,152.91 b. $1,109.28 c. $1,138.29 d. $1,167.61 Please answer with explanation I will really upvote
- A $10,000 credit supply has the following terms: trade terms are 5/5 net 50, interest rate 8%. What is the amount to pay if the buyer will take the discount and pay on the 5th day of the invoice? A. -14.234 B. -14,250 C. -14.260 D. -14,230Calculate the interest (in $), purchase price (in $), and effective interest rate (as a %) of the Treasury bill (T-bill) purchase. Round effective interest rate to the nearest hundredth of a percent. Discount Purchase Price Face Term Effective Interest Value Rate (%) (weeks) Rate (%) $80,000 4.60 26 $ % Need Help? Read It17. A $12,000 T-bill is purchased at a 4.05% discount rate for 40 weeks. Find (a) the purchase price of the T-bill, (b) the maturity value, (c) the interest earned, and (d) the effective rate of interest to the nearest hundredth of a percent.
- Calculate the interest (in $), purchase price (in $), and effective interest rate (as a %) of the Treasury bill (T-bill) purchase. Round effective interest rate to the nearest hundredth of a percent. Face Discount Term Purchase Effective Interest Value Rate (%) (weeks) Price Rate (%) $80,000 4.20 26 $ 2$Calculate the interest (in $), purchase price (in $), and effective interest rate (as a %) of the Treasury bill (T-bill) purchase. Round effective interest rate to the nearest hundredth of a percent. Face Value Purchase Price Effective Rate (%) Discount Term Interest Rate (%) (weeks) $60,000 4.60 26 $ %Treasury Bill :$10,000 face value: Days to maturity: 153 Bid yield: 0.038 Ask yield: 0.034 What is the price that you will have to pay if you were to buy one T-bill from a dealer?
