Please someone help me..

Assume that a $1,000,000 par value, semiannual coupon US Treasury note with four years to maturity has a coupon rate of 3%. The

ASHA 777 [7]

Answer:

Value of treasury Note =$ 746,617.36

Explanation:

<em>The value of the notes is the present value of future cash flow discounted at its YTM of 11%. The value of the Note is the present value of the future cash receipts expected from the it.</em>

The value is equal to present values of interest payment and the redemption value (RV).

Value of Notes = PV of interest + PV of RV

The value of Note can be worked out as follows:

Step 1

Calculate the PV of Interest payment

Present value of the interest payment

PV = Interest payment × (1- (1+r)^(-n))/r

r-Yield to Maturity, n- number of years

Interest payment = 3% × $1,000,000 × 1/2= $15000 .

Semi-annual interest yield = 11%/2 =5.5%

PV = 15,000 × (1 - (1.055)^(-3×2)/0.055) =

Step 2

PV of redemption Value

PV of RV = RV × (1+r)^(-n)

= 1,000,000 × (1.055)^(-4× 2)

= 651,598.87

Step 3

Calculate Value of the Notes

= 95,018.49 + 651,598.87

= $ 746,617.36

Value of treasury Note =$ 746,617.36

8 0

3 years ago

Spencer Co. decides to establish a petty cash fund with a beginning balance of $200. The company decides that any purchase under

miv72 [106K]

Answer:

Explanation:

The journal entry is shown below:

Petty cash A/c $200

To Cash A/c $200

(Being the petty cash fund is established)

Simply we debited the petty cash account and credited the cash account so that the correct posting can be done with the correct item and the correct value.

All other information which is given is not relevant. Hence, ignored it

4 0

3 years ago

The confirmation of customers' accounts receivable rarely provides reliable evidence about the completeness assertion because:__

vlada-n [284]

Answer:d

Explanation:maybe

6 0

2 years ago

In a private company’s accounting system, inputs are _______________ and outputs are _________.

kirill [66]

The choices can be found elsewhere and as follows:

A. marketing strategy-type information;sales data

B. results of surveys on consumer satisfaction; accounts payables

C. transactions such as sales, payroll, and other expenses; financial statements

D.transactions such as the cash flow statement; payroll taxes

I think the correct answer is option D. In a private company’s accounting system, inputs are transactions such as the cash flow statement and outputs are payroll taxes. Hope this answers the question.

6 0

3 years ago

Among the greatest failures of the process of collectivization in China was Group of answer choices trying to convert desert and

Romashka-Z-Leto [24]

Answer:

C. the starvation of up to 35 million people.

Explanation:

Collectivization was first introduced in the USSR by Joseph Stalin between 1929-1933 and his purpose for starting this process was to limit the powers of the Kulaks, who were the rich peasants. The program was also aimed at improving agriculture. China adopted this same policy under the rule of Mao Zedong between 1949-1976. Also known as <em>The Great Leap Forward </em>era, this process sought to make China a socialist economy and also increase productivity in agriculture.

The resultant effect of this process was mass starvation of about 35 million people in 1959. Although the government referred to floods and droughts as the cause of this starvation, it was actually the result of collectivization. When Diang Xiaping came into power in 1978, he instituted reforms in the collectivization process that proved successful.

3 0

3 years ago