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
Simora [160]
3 years ago
12

Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with four years to maturity has a coupon rate of 4%. Th

e yield to maturity (YTM) of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note
Business
1 answer:
Veronika [31]3 years ago
7 0

Answer:

$8,744,669.10

Explanation:

<em>Using the MS Excel Present value function</em>

Value of the note = PV(Rate, Nper, PMT, -FV, Type)

Value of the note = PV(7.7%/2, 4*2, -1000000*4%/2, -1000000)

Value of the note = 8744669.0978

Value of the note = $8,744,669.10

So, the value of the Treasury note is $8,744,669.10

You might be interested in
Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is re
VMariaS [17]

Answer:

A. Continuous review system

B. Order quantity = 2,049 Books

C. Reorder point=987

Explanation:

a. To manage inventory, the company is using CONTINUOUS REVIEW SYSTEM

b. Calculation to find the order quality

Using this formula

Order quantity = √((2DS)/H)

Let plug in the morning

Order quantity=√ ((2 x 49,404 x 17)/0.40)

Order quantity = 2,049 Books

Calculation for annual demand

Annual demand=138*358 days

Annual demand=49,404

C. Calculation for reorder point

First step is to find the σL

73 % S.L. - z = 0.613

Using this formula to find the σL

σL = (Lσ^2)

Let plug in the formula

σL=√(7(13)^2)

σL= 34.39

Second step is to find the Reorder point using this formula

Reorder point = d bar(L) + zσL

Let plug in the formula

Reorder point = (138)(7) + 0.613(34.39)

Reorder point = 966+21

Reorder point=987

4 0
3 years ago
Insurance offers consumers
DerKrebs [107]

Explanation:

insurances customers don't have a complicated need they want to be able to choose from a good selection of policies at a responsible prices they want clear transparent information and their wants more than hassle-free interactions

hope it helps u

3 0
3 years ago
Read 2 more answers
Suppose Dexter and Amy are the only members of a community that is trying to determine how much of a public good should be produ
Olin [163]

Answer:

c.

Explanation:

4 0
3 years ago
As a firm's sales grow, its current assets also tend to increase. For instance, as sales increase, the firm's inventories genera
yanalaym [24]

Answer: True

Explanation:

Current assets are the assets that a company had and which are expected to be either used or sold over the next year. Examples of current assets are cash, cash equivalents, stock inventory, accounts receivable, marketable securities, and other liquid assets.

It should be noted that when the sales of a from continue to grow, the current assets of such company also increases. An example is when there is an increase in the sales increase, this.will also have an impact on the firm's inventories as there will be an increase.

6 0
3 years ago
Black Sparrow Aviation, Inc. is concerned they are not maintaining adequate liquidity. The accounting department has provided yo
viktelen [127]

Answer:

Black Sparrow Aviation, Inc.

1. Indications from ratios about Black Sparrow Aviation:

The current ratio of 4.5 is higher than the industry's norm of 4.0.  This indicates that working capital elements are not being managed properly.  This is supported by the the remaining four ratios.  Inventory level is not optimal.  More inventory is held without being sold to customers.  Obviously, from the inventory turnover of 6.0 translating to approximately 61 days that it takes the company to sell its inventory as against the industry average of 35 days, it shows that the marketing and sales forces lack stamina.  Debt collection from customers is over-delayed, showing poor credit policy and management.  Perhaps, it takes the company many days to issue invoices.  More time than necessary is allowed to customers to pay compared to the industry norm.  In addition, payments are made to suppliers 11 days earlier than the industry average.  Advantage is not being taken of trade credit offered by suppliers.   Trade credit is an important source of funding operations, which every company should utilize to the maximum.

2A.  Based on the above ratios, I would recommend:

1. Minimum inventory should be maintained.

2. Sales efforts should be intensified, so that more sales are made each year than it is currently the case.

3. Debt collection is an important activity for every company that sells on account.  This activity should be taken seriously.  Credit extension to customers should not exceed 50 days.

4. Payments to suppliers can be delayed by more 10 days without offending suppliers.

2B. Results from Recommendations:

1. Working capital is not tied in inventory.

2. More debts are recovered from customers and on time.  Delay increases credit default.

3. More sales are made to customers, increasing the turnover.  The profit is always in the frequency of turnover.

4. Short-term financing is obtained from suppliers, which strengthens liquidity.

Explanation:

Liquidity management is a financial management tool, which describes a company's ability to meet financial obligations through cash flow, funding activities, and capital management in order to minimize the risks associated with illiquidity.

Calculation, analysis, comparison of ratios are some of the ways to make informed decisions on liquidity management.  Ratios should be compared over many periods, with best performing competitors, and the industry norm to ascertain the position of the reporting entity.

8 0
3 years ago
Other questions:
  • What is a tax audit? What are some different types of audits?
    15·2 answers
  • A business owned by two or more people who have unlimited liability is called a
    13·2 answers
  • Problem definition requires the researcher to specify what information is needed to assist in either solving problems or identif
    12·1 answer
  • On January 1, 2018,Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost
    7·1 answer
  • Ted owns a small florist shop. Since his business is booming, his realizes he will soon need one more delivery van. He decides h
    6·1 answer
  • Venus LLC is a large monopolistic electronic firm. The firm has been putting a lot of pressure on some of the complementor compa
    15·1 answer
  • The _____ section of a business plan should include ownership details.
    15·1 answer
  • What is the role of mining in a business​
    9·2 answers
  • If athletes choose to use supplements despite the known risks, usada currently recognizes ___________ as the third-party program
    12·1 answer
  • hudson corporation will pay a dividend of $2.80 per share next year. the company pledges to increase its dividend by 7.40 percen
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!