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
Silver Spoon Service repairs commercial food preparation equipment. The following budgeted cost data is available for 2019: Time
stepladder [879]

Answer:

The rate charged per hour of labor is 120.

Explanation:

Rate charged per hour of labor is given by:

= Budgeted cost per labor hour + Profit margin

= 660000/10000 + 54  

= 120

Therefore, The rate charged per hour of labor is 120.

5 0
3 years ago
American Airlines has established a goal of increasing its profits by 12 percent next year. To ensure that the goal is reached,
Nimfa-mama [501]

Answer:

Controlling  function

Explanation:

Management is an authority that is hiring in the company or business for gaining profit and provide stability to the business. In business, management authorities have the power to control and decide the necessary step that provides gain to the business.

In the case of American Airlines, management has all Controlling  functions that help them to get back business on track.

8 0
3 years ago
The following is the stockholders' equity section of Harbor Co.'s balance sheet on December 31: Common stock $10 par, 100,000 sh
Murljashka [212]

Answer:

The book value of shares is $10

Explanation:

The balance of shareholders equity is $2,200,000.This comprises of retained earnings of $800,000 and Issued Share Capital of $1,400,000(for 140,000 units of shares)

To ascertain the unit of shares,see below:

45000units= $450,000

15000units reacquired at $150,000

Which also means that $1,100,000 is for 110,000units of shares.

In each of these cases highlighted above share price is $10

for instance:$450,000/45000shares=$10

$150,000/15000=$10 e.t.c

8 0
3 years ago
Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm. Assume it is considering the following financ
weqwewe [10]

Answer:

Plan A = 8.55%

Plan A =8.57%

Plan A =7.9%

Plan A =6.58%

Explanation:

The weighted average cost of capital can be computed by multiplying the Cost of capital (after tax) with the weights. The weighted average cost for four plans are as follows

WACC = Cost of capital x Weights

PLAN A

                                Weights      Cost of capital      WACC

Debt                         3.0 %                    15 %                0.45%    

Preferred stock       6.0                        10%                0.6%

Common equity      10.0                      75%               7.5%

WACC                                                                          8.55%

PLAN B

                                Weights      Cost of capital      WACC

Debt                         3.2 %                  25%                0.8%    

Preferred stock       6.2                      10%                0.62%

Common equity      11.0                      65%               7.15%

WACC                                                                         8.57%

PLAN C

                                Weights      Cost of capital      WACC

Debt                          4.0 %                   35 %                1.4%    

Preferred stock        6.7                        10%                0.67%

Common equity       10.6                      55%               5.83%

WACC                                                                          7.90%

PLAN D

                                Weights      Cost of capital      WACC

Debt                         7.0 %                   45 %                3.15%    

Preferred stock       7.6                       10%                 0.76%

Common equity       12.6                     45%                5.67%

WACC                                                                          6.58%

4 0
3 years ago
When are strawberries in season? (detailed)!
sertanlavr [38]
In season January through November.
7 0
3 years ago
Read 2 more answers
Other questions:
  • If Chester Corp. were to buy all of it's shares outstanding at its current price, how much would it cost Chester Corp, excluding
    11·1 answer
  • he following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.9 hours S
    6·1 answer
  • You purchase one MMM July 129 call contract (equaling 100 shares) for a premium of $21. You hold the option until the expiration
    6·1 answer
  • The CPI is 120 in year 1 and 150 in year 2. All inflation is anticipated. If Gringotts Bank charges an interest rate of 20.00 pe
    7·1 answer
  • When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that ap
    13·1 answer
  • If you could purchase IBM stock and simultaneously sell the stock for $5 more, you would be involved in one type of economic act
    9·1 answer
  • Autonomous consumption is defined as: Group of answer choices the level of consumption that depends only on the exchange rate. t
    7·1 answer
  • Elliot is preparing a training program for his company's subsidiary in Paris, France. He speaks French fairly well, but does not
    12·1 answer
  • What's the present value of $1,375 discounted back 5 years if the appropriate interest rate is 6%, compounded monthly?
    7·1 answer
  • Consider the following two investment alternatives. First, a risky portfolio that pays a 12 percent rate of return with a probab
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!