Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Feb 26, 2021

An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the note is discounted 20 days after

An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the note is discounted 20 days after the issue date at a rate of 6.8% p.a., calculate the amount of discount.
n

Step by Step Solution

★★★★★

3.43 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

Face value 120000 Discount ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Investment Management

Authors: Geoffrey Hirt, Stanley Block

10th edition

0078034620, 978-0078034626

More Books

Students also viewed these Finance questions

Question

★★★★★

A convertible bond has a face value of $1,000, and the conversion price is $50 per share. The stock is selling at $42 per share. The bond pays $60 per year interest and is selling in the market for...

Answered: 1 week ago

Question

★★★★★

A 10-year German government bond (bund) has a face value of 100 euros and an annual coupon rate of 5%. Assume that the interest rate (in euros) is equal to 6% per year. What is the bond's PV?

Answered: 1 week ago

Question

★★★★★

A 30-year bond has a face value of $1,000 and a coupon rate of 6% per year, interest payments are paid semiannually. If the maturity from now is exactly 10 years and the current market rate for the...

Answered: 1 week ago

Question

★★★★★

There is a mathematical puzzle called "Four Fours." In it, you use four 4s to make other whole numbers. Examples: You can make 61 (4+4)+4+4-6 Four Fourths You can also make 9! You Try! What other...

Answered: 1 week ago

Question

★★★★★

After receiving many complaints about his final-grade histogram from students currently taking a Statistics course, the professor from Exercise 53 distributed the following revised histogram: a)...

Answered: 1 week ago

Question

★★★★★

Fellowes and Associates Chartered Professional Accountants is a successful national accounting firm with a large range of clients across Canada. In 2020, Fellowes and Associates gained a new client,...

Answered: 1 week ago

Question

★★★★★

=+What is the response variable?

Answered: 1 week ago

Question

★★★★★

On April 1, 2011, Bay delivers merchandise to Ram for 200,000 pesos when the spot rate for pesos is 6.0496 pesos. The receivable from Ram is due May 30. Also on April 1, Bay hedges its foreign...

Answered: 1 week ago

Question

★★★★★

WSR Inc. sells a variety of drink and food products including potato chips and sodas. The segmented income statements for these two products are as follows: Sodas Chips Sales $800,000 $900,000...

Answered: 1 week ago

Question

★★★★★

Warf Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years, this same group...

Answered: 1 week ago

Question

★★★★★

20 Costs that do not change on a per unit basis as the level of activity changes are which of the following? A. Variable costs B. Fixed costs C. Direct costs D. Indirect costs

Answered: 1 week ago

Question

★★★★★

Making sure that time is dedicated to problem - solving and post - performance review is an explicit part of: - Supportive learning environment. - Learning processes and practices. - Managers...

Answered: 1 week ago

Question

★★★★★

High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage...

Answered: 1 week ago

Question

★★★★★

In a research project the PMHNP is conducting, some patients are excluded from the project, so instead of randomizing subjects, the subjects are highly selected. This type of selection could produce...

Answered: 1 week ago

Question

★★★★★

The 15 tenure track professors in a university math department are paid an average of $90,000 per year, while the 10 adjunct professors are paid an average of $60,000 per year. What is the average...

Answered: 1 week ago

Question

★★★★★

9. Alicia is the project manager of the Cloud Managed Services team that works on the Spanish Telecom project. Recently the client sent a request for a custom cloud solution. The typical development...

Answered: 1 week ago

Question

★★★★★

(ADOPTED) Safe and Sound Travel operates a ferryboat that takes tourists on sight-seeing tours in the Hundred Islands of Pangasinan. The company adjusts its accounts at the end of each month. The...

Answered: 1 week ago

Question

★★★★★

What is a lobbyist in US? How did this term emerge?

Answered: 1 week ago

Question

★★★★★

What is the logic behind Barrons Confidence Index?

Answered: 1 week ago

Question

★★★★★

You are considering the purchase of two $1,000 bonds. Your expectation is that interest rates will drop, and you want to buy the bond that provides the maximum capital gains potential. The first bond...

Answered: 1 week ago

Question

★★★★★

What is a value-weighted index? Explain the impact that large firms have on value-weighted indexes such as the S&P 500.

Answered: 1 week ago

Question

★★★★★

28.Astatistician is interested in testing the hypotheses and H0:p> 120 H^.ft Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

16. A hot dog vendor at a football game must decide in advance how many hot dogs to order. He makes a profit of $.10 on each hot dog which is sold, and he suffers a $.20 loss on hot dogs which are...

Answered: 1 week ago

Question

★★★★★

20. In Exercises 15, 16, 17, and 19, what would the optimal estimates be if the loss function were quadratic instead of linear [that is, if the loss function were of the form (9.13.1)]?

Answered: 1 week ago

Previous Question Next Question