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Strike441 [17]
3 years ago
13

A T-bill quote sheet has 120-day T-bill quotes with a 5.07 ask and a 5.01 bid. If the bill has a $10,000 face value, an investor

could sell this bill for _____.
a. $9,833.00
b. $9,835.29
c. $10,000
d. $9,831.00
Business
1 answer:
umka2103 [35]3 years ago
4 0

Answer:

a. $9,833.00

Explanation:

When selling or buying T-bills we need to consider

The bid price or price at which buyers are willing to purchase a T-bill

The ask price which is price at which sellers are willing to give T-bill, and

The face value which is the price of the T-bill at maturity

Sale price = Face value(1- {Ask price*Time}/360)

Sale price = 10,000(1-{0.0501*120}/360)

Sale price = 10,000* 0.9833

Sale price= $9,833

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Think about a tradeoff associated with taking college classes and pursuing a degree. What kinds of things do you trade off to ta
Ksju [112]

Answer:

time and money

Explanation:

The two main general tradeoffs that you're making are time and money. You are using your valuable time pursuing that degree as well as spending money on tuition and other expenses. This therefore, becomes an opportunity cost since you could have spent that time and money doing other things such as travelling to see the world, creating a business, investing, or even learning something else. Anything that you could think of would be an opportunity cost of deciding to use your time and money to pursue that degree.

3 0
3 years ago
Your company is trying to decide which of the two following devices should be selected.
jeyben [28]

Answer:

a) Find the attached jpeg file for the cash flow diagram

b) The company should purchase Device B.

Explanation:

a) Draw cash flow diagram for each option

A project cash flow diagram is a tool that is used to present a visual representation of the cost of a project and cash it is expected to generate over a specified period of time. On the diagram, x-axis represents the year,  and y-axis represents cash out flows and/or inflows.

Note: See the attached jpeg for the cash flow diagram.

b) If interest rate is 7%, which device should your company purchase?

To determine this, we compare the Net Present Value (NPV) of the 2 devices.

Note: See the attached excel file for the calculation of the NPVs of the two devices.

From the attached excel file, we have:

NPV of Device A = $230

NPV of Device B = $262

Decision: Since $262 NPV of Device B is greater than the $230 NPV of Device A, <u>the company should purchase Device B.</u>

7 0
3 years ago
Estimate the time it would take for earth to get 0.1% heavier at this rate.
Leno4ka [110]

I believe the correct answer to your question would be 10 to 14 years for the earth to get 0.1% heavier.

Hope I could help! :)

6 0
4 years ago
Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP does not include the value of inte
klasskru [66]

Answer: Option (b) is correct.

Explanation:

Real GDP is totally based on the base year price level. This means that base year price level remains the same over all the periods. Therefore, Real GDP is generally not affected by the changes occur in the price level. Hence, it only includes the changes in output.

Nominal GDP takes into account the effect of changes in the price level. Therefore, it is affected by the changes in the price level and it is also measured in current U.S dollars. Hence, it doesn't show the true value of the goods and services produced in a given year.

4 0
4 years ago
Provide a recommendation to Kimishima on how Nintendo should formulate its strategy to compete successfully in the gaming indust
Aneli [31]

Answer:

Recommendation to Kimishima about Nintendo is given below:

Explanation:

Nintendo already have a goodwill with [now adults] because they have been playing Nintendo during their childhood, this goodwill can be revived by developing a software [Game] which is famous in Adults [Reality Game]. Also Nintendo can develop a hardware [Gaming Console] which should be compatible with other developers games and possibly cheaper in price to attract customers.

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3 0
3 years ago
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