Which skill is most important in a candidate applying for the position of a security officer?

Global Exporters wants to raise $31 million to expand its business. To accomplish this, it plans to sell 20-year, $1,000 face va

yanalaym [24]

Answer:

Min number required = 36742.44878 rounded off to 36743 bonds

Explanation:

To calculate the minimum number of bonds that must be sold, we first need to calculate the bonds price.

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1,000 * 0.062 * 6/12 = $31

Total periods (n) = 20 * 2 = 40

r or YTM = 0.0775 * 6/12 = 0.03875 or 3.875%

The formula to calculate the price of the bonds today is attached.

Bond Price = 31 * [( 1 - (1+0.03875)^-40) / 0.03875] + 1000 / (1+0.03875)^40

Bond Price = $843.7107767 rounded off to $843.71

The bonds will sell at a price of $843.71 today.

So the minimum number of bonds that must be sold is,

Min number required = 31,000,000 / 843.7107767

Min number required = 36742.44878 rounded off to 36743 bonds

6 0

3 years ago

Consider a two-step mortgage for $150,000, 30 years, monthly payments, an initial interest rate of 5%, a cap of 5%, and a single

gladu [14]

Answer:

Consider the following calculations

Explanation:

This 2-step mortgage problem requires a 2-step solution.

To solve for the PMT for the last 23 years of the loan, we first need to know what the principal is at the end of the 7th year.

Thus, step I uses the initial info to solve for the PMT for each month of the first 7 years. N=360, I/Y=5(%)/12 = 0.416667(%), PV=150,000, => PMT = 805.

The discount rate will change to 5% index rate plus 2% margin = 7% at the beginning of the 8th year.

In Step II we first determine the remaining balance at the end of year 7. This requires using the amortization worksheet.

On the TI BA II Plus, AMORT is the secondary function of PV.

Set P1, the periods at which the calculations begin, equal to 1. We cursor down to P2, which is the last period of the calculation, and set it equal to 84. Cursoring down once again, we see that BAL at month 84 = 131,917.52.

Going back to the TVM row, we set PV remaining at the end of 23 years = 131,917.52. I/Y is calcluated as 5(%) index rate plus 2(%) margin =7%; dividing 7(%) by 12 = 0.583333(%). N=360-84 = 276 months left.

Finally, we solve for PMT = 962.89.

7 0

3 years ago

National Bank currently has $1,550 million in transaction deposits on its balance sheet. The current reserve requirement is 14 p

jenyasd209 [6]

Answer:

Explanation:

Purchase of securities by the federal bank

To purchase any securities the trade dealers at desk firstly call to government securities dealers of major commercial and investment banks. The govt. securities dealers provide the list of securities they want to sale.

This list also shows the maturity, denomination, and prices of securities. The FRNBY traders purchase securities at the lowest prices. They will notify the government bond agencies for the payment to selling dealers for the securities.

Panel A: Initial Balance Sheets: (IN MILLIONS)

FED

Assets- Securities: $56

Liabilities- Reserve Accounts: $56

National Bank

Assets- Loans: $644

Reserve Deposits at Fed: $56

Liabilities- Transaction deposits: $700

Panel B: After All Changes: (IN MILLIONS)

FED

Assets- Securities: $43.071

Liabilities- Reserve Accounts: $43.071

National Bank

Assets- Loans: $674.786

Reserve Deposits at Fed: $43.071

Liabilities- Transaction deposits: $717.857

New initial required reserves = 0.06 × $700 million = $42 million

Change in bank deposits = (1/(0.06 + (1 − 0.50))) × ($56 million − $42 million) = $25.000 million

Loans:

$725.000 million − $43.500 million = $681.500 million

Transaction deposits:

$700 million + ($14 × (1/(0.06 + 0.50)) = $725.000 million

Reserve deposits at Fed:

$725.000 million × 0.06 = $43.500 million

Panel A: Initial Balance Sheets: (IN MILLIONS)

FED

Assets- Securities: $56

Liabilities- Reserve Accounts: $56

National Bank

Assets- Loans: $644

Reserve Deposits at Fed: $56

Liabilities- Transaction deposits: $700

Panel B: After All Changes: (IN MILLIONS)

FED

Assets- Securities: $44.100

Liabilities- Reserve Accounts: $44.100

National Bank

Assets- Loans: $690.900

Reserve Deposits at Fed: $44.100

Liabilities- Transaction deposits: $735.000

New initial required reserves = 0.06 × $700 million = $42 million

Change in bank deposits = (1/(0.06 + (1 − 0.70))) × ($56 million − $42 million) × 0.90 = $35.000 million

Loans:

$735.000 million - $44.100 million = $690.900 million

Transaction deposits:

$700 million + ($14 × 0.90 × (1/(0.06 + 0.3))) = $735.000 million

Reserve deposits at Fed:

$735.000 million × 0.06 = $44.100 million

6 0

3 years ago

Goodwill represents the excess of the implied value of an acquired company over the

Paul [167]

Answer: Option A

Explanation: In simple words, goodwill refers to the additional value that an organisation have from its identifiable assets due to its operations over a period of time.

In other words, it can be defined as an intangible asset which an organisation creates over a period of time while establishing the brand image. These assets are not depreciated but are tested for impairment every year. For example brands like apple, Reebok and McDonald have high goodwill in the market which attracts customers towards them

Thus, from the above we can conclude that the correct option is A.

6 0

3 years ago

sale of merchandise on account for $36,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at the time of sal

aleksandr82 [10.1K]

Answer:

a.Sales tax to be recorded at the time of sales.

b.36000

c.38880

d.Sales tax payable

Explanation:

a.Because sales tax is subjected to sales so it is liability of seller to charge sales tax to customer.

b. Sales = $36000

c.Account receivable = [36000+(36000*8%)]=36000+2880=38880

Entry: Dr Account receivable 38880

Sales 36000

Sales tax payable 2880

d. Sales tax payable, it is liability for a seller to refund to government treasury.

6 0

3 years ago