FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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An investment dealer acquired a $5000.00, 364-day Government of Canada treasury bill on its date of issue at a price of $4858.52. What is the annual rate of return?
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- A bank applies a semi-annually capitalized nominal rate of 11.8% for an investment. Calculate monthly effective rate.arrow_forwardA 3-month $5000 Treasury bill with discount rate 5.785% was sold in 2009. Find a. the price of the T-bill, and b. the actual interest rate paid by the Treasury. a. The price of the T-bill is $ (Round to the nearest dollar as needed.)arrow_forward1) A factoring company discounts a client a document with a maturity value of 40,000 at a discount rate of 16% simple per year with a maturity of 90 days. On the same day, the factoring company discounts the document at a financial institution that offers a discount rate of 15% simple annual rate. What was the profit that the factoring company obtained? options: 100 72 181 142arrow_forward
- A $100,000, 156-day Government of Canada Treasury bill was purchased on its date of issue to yield 1.9%. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What price did the investor pay? Purchase price $4 b. Calculate the market value of the T-bill 82 days later if the rate of return then required by the market has: Market value (i) Risen to 2.2% (ii) Remained at 1.9% (iii)Fallen to 1.6% c. Calculate the rate of return actually realized by the investor if the T-bill is sold at each of the three prices calculated in Part (b). (i) r = (ii) r (iii)rarrow_forwardUsing Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual percentage yield (APY) for the investment. (Round your answers to two decimal places.) Compound Interest Earned in 1 Year Annual Percentage Yield (APY) Nominal Interest Principal Rate (%) Compounded $33,000 12 monthly $ % Need Help? Read It 3 Type here to searcharrow_forwardExxon-Mobil's receipts and disbursements are shown below. Calculate the future worth in year 7 at an interest rate of 8% per year. Year Cash Flow, S -6,000 1 5,000 2 4,000 3 5,000 4 5,000 -1,000 7,000 7 8,000 O $31,023.34 O S18,101.82 O $19,998.37 O 331,312.27arrow_forward
- 1. Suppose that over one year the number of Dollars per one Euro changes from 1.00 to 1.20. That is, the dollar depreciates. a. Obtain the Annual depreciation rate of the Dollar. b. Obtain the Annualized compound-monthly depreciation rate of the Dollar c. Obtain the Annualized continuously compounded depreciation rate of the Dollar d. Suppose there are exactly 52 weeks in the year. Obtain the Annualized compound-weekly depreciation rate of the Dollar.arrow_forwardUsing Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.) Time Principal Period (years) Nominal Rate (%) Interest Compounded $26,000 11 5 annually $ Compound Amount $ Compound Interestarrow_forwarda 3 month $4,000 treasury bill with discount rate 8.281 was sold in 2009. a. find the price of the t bill . round to nearest dollar b. what is the actual intrest rate paid by the treasuryarrow_forward
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