Start your trial now! First week only $4.99!*arrow_forward*

Question

Alana Olsen borrowed $5,000 for 90 days from First Bank. The bank

discounted the note at 7 percent.

a. What proceeds did Olsen receive?

b. What is the effective rate to the nearest basis point?

Tagged in

Business

Finance

Find answers to questions asked by students like you.

Q: The Green Cable Corporation issued a newseries of bonds on January 5, 2015. The bonds weresold at pa...

A: YTM stands for yield to maturity. It is the required rate of return which investors expect from the ...

Q: How do I find days sales outstanding?

A: SOLUTION:- Days Sales Outstanding is a method by which we compute the average collection time perio...

Q: Arnot International’s bonds have a current market price of $1,200. The bondshave an 11% annual coupo...

A: Yield to maturity (YTM), indicates the amount that an investor can earn at the bonds' maturity.

Q: Carla Vista Sales Company has sales of $1,250,000. If the company’s management expects sales to grow...

A: SOLUTION:- Sales Initially =1,250,000 Sales Finally =2 x 1,250,000 =2,500,000 Ra...

Q: Write a three (3) paragraph justification on How does the Insurance Commission assures the investing...

A: As per US laws, insurance commission is formed in the states to protect the interest of the public. ...

Q: What is the difference between the WAC and the pass-through coupon rate?

A: The weighted average coupon (WAC) is a calculation of earnings rates on the mortgage-backed security...

Q: Quick computing currently sells 19 million computer chips each year at a price of $23 per chip. It i...

A: Impact on the Cash flow from manufacture of new chips is calculated as follows: Increase in sales of...

Q: Maxcorp’s bonds sell for $1,065.15. The bond life is 9 years, and the yield to maturity is 7%. What ...

A: Formulas:

Q: You have $100 to invest for 1 year at a rate of 10%. Bread sells for $2 today and that means you can...

A: Given information: Nominal rate is 10% Inflation rate is 4% Value of investment is $100 Current pric...

Q: How do i find the average daily balance?

A: The method which takes daily balances into consideration rather than weekly or monthly balances is k...

Q: Osama Co. is a listed company operating in the textile industry. Osama Co’s board of directors met r...

A: SOLUTION:- 1)New borrowing required by the firm = New plant price - Sale of old plant ...

Q: What is the expected mean and standard deviation if stock returns followed this historical distribut...

A: The formula to compute expected mean as follows:

Q: In 1981 Congress introduced the Accelerated Cost Recovery System (ACRS) tax depreciation. ACRS allow...

A: Here, Cost of Truck is $11,500 ACRS Depreciation is Year Depreciation Rate 1 25% 2 38% 3 3...

Q: You buy a bond for $955 that has a coupon rate of 6.00% and a maturity of 10-years. A year later, th...

A: Bond are type of debt security which carry fixed rate of interest, issued by government or corporati...

Q: Why does car insurance which explicitly includes ensuring the car for commercial use act to reduce m...

A: Car insurance helps the people to protect from the financial losses. The person provide the insuranc...

Q: A $100,000 bond is currently selling at 96 and the yield on the bond is 7.1%/ What is the interest r...

A: The question is based on the calculation of valuation of Bond with concept of market value.MP=∑i=1nC...

Q: Consider two bonds, a 3-year bond paying an annual coupon of 6.80% and a 10-year bond also with an a...

A: a. Compute value of 3 year bond as: Interest=1000×6.80%=$68VB=Interest×PVAFi%,time+PB×PVFi%,time=68×...

Q: Your great-uncle Claude is 82 years old. Over the years, he has accumulated savings of $80,000. He e...

A: Given information: Present value $80,000 Number of years is 10 Interest rate is 10%

Q: Linda works in an accounts payable department. She has attempted to convince her boss to take the di...

A: Every finance manager needs to take decision regarding the credit policy to be offered by the firm. ...

Q: The average annual tuition for a public university in 1998 was $20,354. In 2018, the average annual ...

A: Tuition cost is increased from $23,333 from $20,354. Percentage increase in the tuition fee over the...

Q: A single-stock futures contract on a non-dividend-paying stock with current price $150 hasa maturity...

A: The stock futures are financial derivative contracts and its underlying asset is equity stock. It is...

Q: Betty plans to invest some money so that she has $3,800 at the end of three years. Determine how muc...

A: Present Value = Future Value / (1+rate)^n Where, rate = rate of interest per period n = no. of comp...

Q: look at the image to help me solve the problem

A: Given data; Revenues= $862,030 expenses = $362,240 depreciation = $103,463 interest expenses= $52,41...

Q: 1 views You have the following initial information on CMR Co. on which to base your calculations ...

A: There is two question, solution for first question will be provided. If you want solution for anothe...

Q: what are the tools the Federal Reserve uses to control monetary policies. Include the objective each...

A: The Federal Reserve typically use following tools to control monetary policies:

Q: Using an Excel worksheet, what is the value of a call option withthese data: P = $35, X = $25, rRF =...

A: The question is based on the concept of calculation of value of call option with use of Black –Schol...

Q: The following table shows the average life expectancies in several countries. Assume that all premiu...

A: The formula used is:

Q: Discuss the factors that are likely to influence the desired level of cash of a company

A: Cash involves cash in hand or bank balance or cash equivalents that can be immediately convertible i...

Q: I need help with question 1

A: Dupont Equation: Return on equity = Net profit margin * Total asset turnover ratio * Equity multipli...

Q: Josh is planning to withdraw $9000 from a savings account at the end of each quarter for 3 years. If...

A: Since more than one question is posted at a time. Answer for first question is only provided. Please...

Q: Delsing Plumbing Company has beginning inventory of 24,000 units, will sell 70,000 units for the mon...

A: Given Beginning Inventory = 24,000 units Sell = 70,000 units Ending Inventory = 40% of Beginning Inv...

Q: Comparison of three essential types of businesses in Australia: use the following criteria and organ...

A: Hey, since there are multiple subpart questions posted, we will answer the first three questions. If...

Q: Assume that the company, where you are working as a team in Financial Department, is considering a p...

A: The formula sheet is: The calculation is:

Q: A Sky resort is studying a half a dozen capital improvement projects. It has allocated shs. 1 millio...

A: Projects Amount Profitability A 500000 1.21 C 350000 1.2 E 200000 1.2 D 450000 1.18 F 4000...

Q: Rose has saved $90 000. If she decides to withdraw $4000 at the beginning of each month and interest...

A: Present value is the value of the amount in current time that is expected to be received in future a...

Q: What is meant by mortgage foreclosure and what alternatives are there to such action?

A: SOLUTION:- It refers to a loan which can obtained by offering some collateral security.It is genera...

Q: Problem 7-17Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is proj...

A: The difference between the sum of equity and debt of a company and the cash and cash equivalents is ...

Q: You are managing an investment portfolio and sell an “inflation protected” annuity that pays $3,448 ...

A: The present value is the value of the sum received at time 0 or the current period. It is the value ...

Q: Darren Mack owns the "Gas n' Go" convenience store and gas station. After hearing a marketing lec...

A: Click to see the answer

Q: Modern Artifacts can produce keepsakes that will be sold for $20 each. Nondepreciation fixed costs a...

A: Operating Leverage is a financial ratio that defines the growth of operating income with the increas...

Q: The following table shows annual rates for various types of loans in 2015. Assume monthly payments a...

A: EMI is a fixed monthly payment of the loan amount that is paid by the borrower to the lender at the ...