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
SOVA2 [1]
3 years ago
14

You can buy commercial paper of a major u.S. Corporation for 495000 $ the paper has face value of 500000 $ and in 45 days from m

aturity calculate the Discount yield and bond equivalent yield on the commercial paper
Business
1 answer:
BartSMP [9]3 years ago
7 0

Answer:

Discount yield is 8%

Bond equivalent yield is 8.19%

Explanation:

The discount yield on the commercial paper is calculated as:

(($500,000 - $495,000)/$500,000 ) x (360/45)

= ($5,000/$500,000 x (360/45)

= 0.01 x 8

= 0.08

= 8%

And bond equivalent yield is calculated as:

(($500,000 - $495,000)/$495,000) x (365/45)

= ($5,000/$495,000) x 8.11

= 0.0101 x 8.11

= 0.0819

= 8.19%

You might be interested in
Select all that apply Workplace diversity benefits:
padilas [110]
Workplace diversity benefits the employers

According to data, employers who have a wide diversity in their employees tend to :
- Have less discrimination lawsuit
- increased productivity
- and a more positive company image in the eyes of society
3 0
3 years ago
Read 2 more answers
A restaurateur visits two restaurants with themes similar to his and prices his menu to approximate the prices charged for simil
Ann [662]

Answer:

Nonstructured pricing

Explanation:

Nonstructured pricing is also called copy cat method of pricing and involves a pricing that is based on prices charged by similar businesses for a product or service. The business copy cats the prices of competitors. On the other hand structured pricing is done based on the firm's internal determination of the value of a product.

A restaurateur visits two restaurants with themes similar to his and prices his menu to approximate the prices charged for similar dishes at the other restaurants. He is using no structured pricing.

8 0
3 years ago
Read 2 more answers
The first benefit of trade given in Chapter 2 is that "trade makes people better off when preferences differ." How does the stor
Bess [88]

Answer:  Dr. Bostwick was able to provide medical services that did not satisfy his own wants, so he exchanged those services for money that he used to buy things that did. Professor Boudreaux had money but desperately wanted a pediatric gastroenterologist to treat his son.

Explanation:

Trade generates value by transferring goods or services from those who value them less to the people who need them more. The only way people can decide to specialize in the making of a single good or service is because they already know they can trade it for other goods they do need.

In the video 'How the Division of Knowledge Saved My Son's Life', Professor Boudreaux explains that it was thanks to Dr. Bostwick specialization on pediatric gastroenterology that his son´s life was saved.

7 0
3 years ago
Andy, a junior in high school, is considering his options for employment following graduation. His uncle, a master electrician,
mojhsa [17]

Answer:

Andy should look and identify his field of interest before choosing a specific career path. If she has none of preferences for his career choice then se can look for other factors to select specific career path.

Explanation:

Andy's grandfather has spend his life in building trades and he is a successful person. He thinks Andy should choose same career path as he did and he can be successful too but this is not the case. The thing can be different in this era, the preferences and nature of Andy might be different from his grand father. There are many others factors which also need to be considered as the job security, learning potential in the field, progress in career, wages and pay rise, working environment and others.

3 0
3 years ago
A calendar year corp. has substantial accumulated E&P, but it expects to incur a deficit in current E&P for the year due
Vadim26 [7]

Answer:

The statement is inaccurate.

Explanation:

Comment on the validity of this statement. LO 3 (p. 19-9).

The statement is inaccurate. When a deficit exists in current E & P and a positive balance exists in accumulated E & P, the accounts are netted at the date of distribution. If a positive balance results, the distribution is a divide to the extent of the balance. Any loss in current E & P is deemed to accrue ratably throughout the year unless the parties can show otherwise.

4 0
3 years ago
Other questions:
  • The effects of inflation Suppose Friendly Airlines is considering signing a long-term contract with the union representing its p
    8·1 answer
  • Computing and Assessing Plant Asset Impairment On July 1, Arcola Company purchases equipment for $330,000. The equipment has an
    6·1 answer
  • You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the
    15·1 answer
  • If the MPC is 0.60 and disposable income decreases from $11,000 billion to $10,000 billion, savings will decrease by
    14·1 answer
  • Bradford, Inc., expects to sell 11,000 ceramic vases for $21 each. Direct materials costs are $3, direct manufacturing labor is
    13·1 answer
  • Which of the following is the primary cause of salary compression? A. taxes B. inflation C. interest rates D. collective bargain
    14·1 answer
  • The _____ perspective of the Balanced Scorecard management system describes the economic consequences of actions taken in the ot
    13·1 answer
  • Need help please??????????!!!!!!!!!!!!
    5·1 answer
  • Your store is running a sale. All dresses are 40% off. One dress sells for $150. How much money will someone buying this dress s
    8·1 answer
  • I need HELP
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!