Answered: COMPUTE TRINA'S INTEREST INCOME UNDER…

COMPUTE TRINA'S INTEREST INCOME UNDER THE FOLLOWING SITUATION: The note is non-interest bearing, but the prevailing market rate of the same note is 10%.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 21CE

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

trina received a promissory note of Php. 90,000, representing payment for his services as a legal officer, from rICH Company payable after two years. COMPUTE TRINA'S INTEREST INCOME UNDER THE FOLLOWING SITUATION: The note is non-interest bearing, but the prevailing market rate of the same note is 10%. USE 3 DECIMAL PLACES FOR PV OF 1 FOR 10% FOR 2 PERIODS.

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