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aksik [14]
3 years ago
14

A 15-year 3 1/4% Treasury Bond is quoted at 100-12 - 100-16. The bond pays interest on Jan 1st and Jul 1st. A customer sells 5M

of the bonds. Approximately how much will the customer receive, disregarding commissions and accrued interest?
Business
1 answer:
trasher [3.6K]3 years ago
4 0

Answer:

The multiple choices are:

$5,006.00

B $5,018.75

C $5,025.00

D $5,028.75

The correct option is B,$5018.75

Explanation:

The key to unlock this question is to know that government securities are usually quoted in 1/32 nds ,which means that in calculating the price  the number after 100 is is multiplied by 1/32.

1M means 1000,while 5M means 5000

The price of 5M=5000*(100+12*1/32)%

The price of 5M=5000*(100+0.375 )%

The price of 5M=$5018.75

In this case the bid price which is lower is used when selling securities to the dealer

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Amiraneli [1.4K]

Answer:

b ithink

Explanation:

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3 years ago
What is one downside of banking at a traditional branch versus on-line-only banking​
tresset_1 [31]

<u>Answer:</u>

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6 0
4 years ago
A small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various co
laiz [17]

Answer:

Method 1 should be chose, since it is still the cheapest if labor cost rises to $200/unit.

Explanation:

Total Cost = ( units * labor costs) + (capital cost * units of labor)

Total Cost for Method 1 : (50 * 100) + (10*400)

= $9,000

Total Cost for Method 2 : (20 * 100) + (40*400)

= $18,000

Total Cost for Method 3 : (10 * 100) + (70*400)

= $29,000

If  the price of labor rises to $200 then:

Total Cost for Method 1 : (50 * 200) + (10*400)

= $14,000

Total Cost for Method 2 : (20 * 200) + (40*400)

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Total Cost for Method 3 : (10 * 200) + (70*400)

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5 0
3 years ago
Read 2 more answers
The funds the Fed receives from selling government securities
nikdorinn [45]

Answer:

d. are deposited in the U.S. Treasury

Explanation:

The Federal income is mostly generated from the interests on the government securities, Once each and every expenses of the Fed is paid, the remaining earning is deposited in the  U.S. Treasury.

Hence, the correct answer will be "d. are deposited in the U.S. Treasury."

6 0
3 years ago
All Kiwi Ltd (a New Zealand-based company) has a wholly-owned subsidiary in Malaysia whose manager is being evaluated on the bas
Ulleksa [173]

Answer:

Variance (Unfavorable) (NZD 340,000)

Explanation:

Budget Variance using exchange rate projected at the time of budget

                   Budget        Actual        Variance   Exc. Rate   Variance in NZD

                    MYR            MYR

Revenue  12000000   11000000    -1000000      0.34            -340000

Expenses  9000000   9000000          0               0.34                  0

Profit        3000000    2000000    -1000000      0.34            -340000

7 0
3 years ago
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