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3 years ago

In financial markets, firms and governments in search of funds to pay for their daily operations would be the:___________.

Business

1 answer:

bija089 [108]3 years ago

4 0

Answer:

Borrowers

Explanation:

Financial markets provide the platform for trading of financial assets (instruments) . In the financial markets, through the activities of a combination of participants , funds from the surplus sector (investors) are channeled to the deficit sector (borrowers).

The surplus sector comprises of persons, government, firms e.t.c who have more funds than they need to spend right away. Conversely, the deficit sector represents parties (firms, individuals, government) who are have shortage of funds for whatever purpose-e.g consumption, business expansion, funding of daily operations e.t.c . In short, they are in search of funds for different purposes.

Financial instruments : These are contracts that confer rights on their holders (investors/lenders) to claim the income generate by the assets owned by the borrowers.

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A. How much would you pay for a Treasury bill that matures in 182 days and pays $10,000 if you require a 1.8% discount rate?

Sonja [21]

Answer: $9909

Explanation:

Let the amount that will be paid be represented by y. The question can now be solved as:

(10000 - y)/10000 × 360/182 = 0.018

(10000-y)/10000 = 0.018 × 182/360

(10000 - y)/10000 = 0.0091

10000-y = 0.0091 × 10000

10000 - y = 91

y = 10000 - 91

y = $9909

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3 years ago

What is the new 2021 conforming loan limit for 1-4 family homes?

dolphi86 [110]

Conforming Loan Limits Increase By 18% in 2021 for the Year Ahead.

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3 years ago

Adriana has borrowed $30,000 from her IRA in order to fund her startup costs. How long does she have to replace the money withou

nordsb [41]

Answer:

it is NOT 30 days

Explanation:

7 0

3 years ago

Read 2 more answers

Currently, Bruner Inc.'s bonds sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value,

elena-14-01-66 [18.8K]

Answer:

2.11%

YTM 0.089142162

YTC 0.068070103

Difference: 0.021072059 = 0.0211 = 2.11%

Explanation:

To calculate each rate we must solve for a rate at which the future coupon payment and maturity (or call value) equals the market price:

This is solve for excel and goal seek tool

It could also be solve with a financial calculator

YTC:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment: $ 120

time 5 yeaars

rate 0.068070103 (solved with excel)

$120 \times \frac{1-(1+0.0680701028057608)^{-5} }{0.0680701028057608} = PV\\$

PV $494.5766

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity: $ 1,050 (call price)

time 5.00

rate 0.068070103

$\frac{1050}{(1 + 0.0680701028057608)^{5} } = PV$

PV 755.42

PV c $494.5766

PV m $755.4235

Total $1,250.0002

YTM:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Cuopon payment: $ 120

time 15 years

rate 0.089142162 (solved with excel)

$120 \times \frac{1-(1+0.0891421622982136)^{-15} }{0.0891421622982136} = PV\\$

PV $972.2006

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $ 1,000.00

time 15 years

rate 0.089142162 (solved with excel)

$\frac{1000}{(1 + 0.0891421622982136)^{15} } = PV$

PV 277.80

PV c $972.2006

PV m $277.7995

Total $1,250.0001

6 0

3 years ago

Changes in net operating working capital should not be reflected in a capital budgeting cash flow analysis because capital budge

Ede4ka [16]

Answer:

The correct answer is False.

Explanation:

Net working capital, or "Working Capital" is simply the difference between current or current assets and current or short-term liabilities of a company.

Cash flow, on the other hand, is the net amount of cash and its equivalents that is transferred inside and outside the company and that may originate in operational, investment or financing activities.

Cash flow will have an operational origin, when there is a net decrease in working capital. In this situation there will be a net cash release that the company can use freely to honor debts, reinvest in operations, pay dividends, cover expenses or provide funds for future investments.

A negative cash flow, from the point of view of operations, implies that the company has increased its cash demands to finance sales on credit or inventory. That is, it has increased its investment in working capital. Situation that will require an analysis that allows a better way to manage capital.

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3 years ago