Question
Problem 19-11 T requires text and F requires just a number If a firm pays its bills with a 30-day delay, what fraction of its
| Problem 19-11 | |||||||||
| T requires text and F requires just a number | |||||||||
| If a firm pays its bills with a 30-day delay, what fraction of its purchases will be paid in the current quarter? In the following quarter? What if the delay is 60 days? | |||||||||
| Step 1: | |||||||||
| Worksheet - 30 day delay | Worksheet - 60 day delay | ||||||||
|
| Month of Purchase | Month for Payment |
|
| Month of Purchase | Month for Payment | |||
| 2012 Qtr. 4 | Dec | T |
| 2012 Qtr. 4 | Nov | T | |||
| 2013 Qtr.1 | Jan | T |
|
| Dec | T | |||
|
| Feb | T |
| 2013 Qtr.1 | Jan | T | |||
|
| Mar | T |
|
| Feb | T | |||
| 2013 Qtr.2 | Apr | T |
|
| Mar | T | |||
|
| May | T |
| 2013 Qtr.2 | Apr | T | |||
|
| Jun | T |
|
| May | T | |||
| 2013 Qtr.3 | Jul | T |
|
| Jun | T | |||
|
| Aug | T |
| 2013 Qtr.3 | Jul | T | |||
|
| Sep | T |
|
| Aug | T | |||
| 2013 Qtr.4 | Oct | T |
|
| Sep | T | |||
|
| Nov | T |
| 2013 Qtr.4 | Oct | T | |||
|
| Dec | T |
|
| Nov | T | |||
|
| Dec | T | |||||||
| Step 2: | |||||||||
| Answers: | |||||||||
| 30 day delay - Payment made at end of 2013 Qtr1 | |||||||||
| Fraction from last quarter | F | ||||||||
| Fraction from this quarter | F | ||||||||
| Fraction for next quarter | F | ||||||||
| 60 day delay - Payment made at end of 2013 Qtr1 | |||||||||
| Fraction from last quarter | F | ||||||||
| Fraction from this quarter | F | ||||||||
| Fraction for next quarter | F | ||||||||
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
