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Bad White [126]
3 years ago
12

Assume that a $1,000,000 par value, semiannual coupon US Treasury note with four years to maturity has a coupon rate of 3%. The

yield to maturity (YTM) of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: $746,617.36 $634,624.76 $470,368.94 $895,940.83
Business
1 answer:
Vedmedyk [2.9K]3 years ago
5 0

Answer:

Asset Price= $746,617.36

Explanation:

Giving the following information:

Face value= $1,000,000

Coupon= 0.03/2= 0.015*1,000,000= $15,000

Number of periods= 2*4= 8 semesters

YTM= 0.11/2= 0.055

<u>To calculate the price of the asset, we need to use the following formula:</u>

<u></u>

Asset Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Asset Price= 15,000*{[1 - (1.055^-8) / 0.055} + [1,000,000 / (1.055^8)]

Asset Price= 95,018.49 + 651,598.87

Asset Price= $746,617.36

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A business issued a 120-day, 5% note for $84,000 to a creditor on account. Journalize the entries to record (a) the issuance of
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Answer:

a. Issuance of note:

Date             Account title                                         Debit                   Credit

XX-XX          Accounts Payable                            $84,000

                    Notes Payable                                                                $84,000

b. The payment of the note at maturity, including interest. Assume a 360-day year.

Interest payment = 84,000 * 5% * 120/360

= $1,400

Date             Account title                                         Debit                   Credit

XX-XX          Note Payable                                    $84,000

                     Interest payable                               $1,400

                     Cash                                                                              $85,400

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Hich of the following is NOT a common credit card fee?
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The business owner used $25000 from their personal savings account to but common stock in their company. what would be the journ
irina1246 [14]

The accounting entry is to Credit Cash for 25000 and Debit Common Stock for 25,000

<h3 /><h3>What is journal entry?</h3>

Journal entry shows how a business financial transactions are being recorded.

Typically, when cash is withdrawn from a business or personal account, the accounting entry is to credit the cash account.

Hence, the accounting entry is to Credit Cash for 25,000 and Debit Common Stock for 25.000.

Learn more about journal entry here : brainly.com/question/14279491

#SPJ1

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pochemuha

When you are at work, and you get angry on something, you need to do some anger control therapies.

Anger control therapies include, Deep breathing, counting from 1 to 10, slowly repeating a calming phrase in your mind, listen to your favorite music, take a short break, talk to your friend on work, drink water, use a stress relief toy, try to relax your muscles, etc.

These therapies will help you control your anger at work.

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