1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SSSSS [86.1K]
3 years ago
13

Jenna decides to purchase a U.S. Treasury Bill for 95,000. The Treasury Bill matures in 180 days for 100,000. Let QR be the quot

ed rate on this U.S. Treasury Bill. Let j be the annual effective yield on this U.S. Treasury Bill assuming a 365 day year. Calculate j−QR.
Business
1 answer:
babymother [125]3 years ago
6 0

Answer:

J-QR =0.96

Explanation:

Quoted interest rate(QR) is nominal interest rate that does not take compounding into consideration

Effective interest rate(J) is real interest rate that accounts for compounding

face value of tbill = 100,000

price = 95,000

time remaining for maturity, n = 180

QR T-Bill = [(Face Value - Price)/(Face Value)] *(360/n) = [(100,000-95,000)/100,000]*(360/180) = (5000/100,000)*2 = 0.10 or 10%

j = (1+ ((Face Value - Price)/price))(365/n) -1 = (1+((100,000-95,000)/95,000))(365/180) -1 = (1+(5000/95000))2.027778 -1 = 0.1096131

j = 0.1096131 or 10.96131% or 10.96%

Therefore j-QR = 10.96-10 = 0.96%

You might be interested in
An aging of a company's accounts receivable indicates that $8,000 are estimated to be uncollectible. If Allowance for Doubtful A
joja [24]

Answer:

c. debit to Bad Debts Expense for $6,900.

Explanation:

Allowance for Doubtful Accounts  $1,100 credit balance,

Estimated Un collectibles                $8000 credit

Required Adjustment                    $ 6900 credit

The adjustment to record bad debts for the period will require a

c. debit to Bad Debts Expense for $6,900.

Bad Debt Expense $ 6900 Dr

Allowance for Doubtful Accounts $ 6900 Cr

Alternatively if the allowance account had a debit balance the entry would have been posted adding the two amounts.

7 0
3 years ago
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mo
Arisa [49]

Answer:

Wingate Company

1. A Contribution Format Income Statement for divisions:

2a. Increase monthly advertising for the West Division by $28,000 to increase its sales by 12%

                                    East          Central        West          Total

Sales                   $412,000  $670,000   $520,000 $1,602,000

Variable exp.         181,280     207,700      166,400      555,380

Contribution

          margin    $230,720    462,300    353,600    1,046,620

Fixed expenses  290,000    332,000     191,000       813,000

Non-Traceable

    Fixed Expenses                                                       338,000

Net operating Income

  (loss)               ($59,280)  $130,300  $162,600   ($104,380)

2b. How much Company's Net Operating Income Increase (Decrease) with the implementation of the above Proposal:

Net operating income before advert = $162,600

Division's net operating income after advert = $160,366

Therefore, the company's net operating loss will increase by $2,234

Explanation:

a) Wingate Company's recent monthly contribution format Income Statement:

Sales                                    $ 1,602,000

Variable expenses                    555,380

Contribution margin               1,046,620

Fixed expenses                        1,151,000

Net operating income (loss) $ (104,380)

b) Division West's Income Statement:

Sales                                 $582,400 ($520,000 x 1.12)

Variable expenses             203,034  ($181,280 x 1.12)

Contribution margin        $379,366

Fixed Expenses                 219,000 ($191,000 + 28,000)

Net Operating Income    $160,366

c) If sales value increases by 12%, the variable expenses will increase proportionately, unless there is an increase in the price, which will ultimately reduce demand, further depressing the sales value.  This is why it is called Variable Cost.  Therefore, a different result will be obtainable if the variable expenses are held constant, contrary to its behavior.

4 0
3 years ago
oas on a callable bond is 75 basis points using on-the-run treasuries as benchmark rates. which is correct?
Rina8888 [55]

The correct statement is option C. OAS reflects the credit risk and liquidity risk of the bond over the treasury benchmark rates. Read below about a callable bond.

<h3>What is a callable bond?</h3>

A callable bond is a type of bond that permits the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity. Consequently, the said point which is basis is 75.

Therefore, the correct answer is option C. OAS reflects the credit risk and liquidity risk of the bond over the treasury benchmark rates.

learn more about callable bond: brainly.com/question/24129882

#SPJ11

4 0
1 year ago
Suppose that you only have liability and collision car insurance and you allow your roommate(who doesn’t have car insurance) to
tatuchka [14]

The accident would likely be covered under the collision insurance, which covers the policyholder's car when it collides with another car or an object (in this case it would be an object since it was a single-vehicle accident.

If you only had liability coverage, the damage would likely not be covered because liability insurance only covers the damage caused to the other person and their car, not you or your car.

This will also be added to your insurance record even though you weren't the one driving because it was your vehicle and your policy.

6 0
3 years ago
Which of the following is NOT a reason to invest your money?
Katen [24]
A. <span>It's safer just to keep it at home in a secure place.

This is a reason to NOT invest. The others are all reasons TO invest. </span>
8 0
3 years ago
Other questions:
  • It is possible to possess elements of more than one learning style.
    9·1 answer
  • A user has a credit card–sized card used to prove her identity with a pin. what is this card called?
    9·1 answer
  • Alfred, a software programmer at Gamma Inc., develops a program that spreads Trojan viruses to the organization’s network. When
    6·1 answer
  • If your average is an 83 and you took a test and made a 80 on it what is your average then?
    15·1 answer
  • The typical result of monopoly is __________ prices and __________ output than we find in a competitive market.
    5·1 answer
  • On March 1, Tammy, a student, received a telephone call from Waverly LLC offering her a job for one year beginning on June 15, a
    5·1 answer
  • What should be appropriate for a target market
    7·1 answer
  • Which of the following groups does not sponsor apprenticeship programs?
    10·1 answer
  • Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: Direct materials $
    6·1 answer
  • Roselawn Company reported net sales of $90,000 and net income of $18,000 for the previous year ended December 31. The company re
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!