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zvonat [6]
3 years ago
11

Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price

of $33,950,000, with the promise to buy them back at a price of $34,000,000. a. Calculate the yield on the repo if it has a 5-day maturity. b. Calculate the yield on the repo if it has a 15-day maturity.
Business
1 answer:
Bad White [126]3 years ago
3 0

Answer:

a. 10.60%

b. 3.53%

Explanation:

a. Calculate the yield on the repo if it has a 5-day maturity.

Profit = $34,000,000 − $33,950,000 = $50,000

Using 360 days a year, we have:

Yield on the repo = ($50,000/$33,950,000)*(360/5) = 0.1060, or 10.60%

b. Calculate the yield on the repo if it has a 15-day maturity.

Using 360 days a year also, we have:

Yield on the repo = ($50,000/$33,950,000)*(360/15) = 0.0353, or 3.53%

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A transaction that is likely to cause an increase in a current liability is: Multiple Choice payment of accrued wages. accrual o
BartSMP [9]

Answer:

The correct answer is accrual of interest expense.

Explanation:

Interest expense is an expense you incur when you borrow money. The lender charges you a specific interest rate that is expressed in your loan document. As time passes, you are charged interest on the amount you borrowed. You may have to calculate the simple or compound interest on your loan depending on how it is structured. If the loan is for business, you will enter interest expenses in your accounting records.

8 0
3 years ago
Drew bought a computer for personal use from Hale Corp. for $3,000. Drew paid $2,000 in cash and signed a security agreement for
Svet_ta [14]

Answer:

Obtain a deficiency judgment against Drew for the amount owed.

Explanation:

Even though Hale repossessed the computer, it must still seek a deficiency judgment against Drew in order to recover the money owed. If Drew cannot pay his debt, he has the right to request Hale to sell the computer in order for Hale to recover the money owed.  

Repossession is one way that a lender can use to reclaim property that was put as collateral for a loan. For example, if you do not pay your car loan, the lender can simply repossess your car by taking it away without a court order. But the debtor still had the right to try to reclaim the property by paying the debt or agreeing on some type of payment procedure.

6 0
4 years ago
Using the most reliable information available, how much of the Earth's land surface is used for agriculture today? View Availabl
enot [183]

Answer:

The answer is: 30 to 40%, according to satellite imagery

Explanation:

Satellite imagery is the most reliable way to try to determine what percentage of the Earth's land is used for agriculture. First and most important, the world is huge and only satellites have the technology to take images of continents and differentiate what possible use is given to them.

Government's surveys and records are no very reliable since you would need to use information from all the governments in the world including democratic countries and nations with dictatorships.

4 0
3 years ago
Indicate whether the following statements are positive or normative. a. Raising interest rates encourages people to save: b. The
denpristay [2]

a. Raising interest rates encourages people to save: positive statement

b. The government ought to be more concerned with reducing unemployment: normative statement

c. The government should raise the tax on tobacco to discourage people from smoking: normative statement

d. The government should limit immigration: normative statement

e. Increasing gasoline taxes results in less disposable income: normative statement

f. The government should raise gasoline taxes and fix bridges: normative statement

<h3>What are normative and positive statements?</h3>

Normative statements come from a viewpoint or an opinion. As a result, the terms "should," "ought," or "it is preferable to" are commonly used. Normative statements can never be proven to be true.

Conversely, positive statements can often be put to the test in theory, if not always in practice. Positive statements are not value judgments. They are predictions of what it is, was, or will become.

Thus, option A is a positive statement and rest are normative statements.

Learn more about positive and normative statements here:

brainly.com/question/14408475

#SPJ4

3 0
2 years ago
Use the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales 58,000
Tema [17]

Answer:

29,394 units

Explanation:

The formula for break even point is given as Fixed cost / Contribution margin.

Where;

Contribution margin = Sales per unit - Variable cost per unit

Given that ;

Fixed cost = $194,000

Unit selling price = $14.90

Unit variable cost = $8.30

Therefore;

BEP(units) = $194,000 / $14.90 - $8.30

= $194,000 / $6.6

= 29,394 units

5 0
3 years ago
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