Answered: The maturity value of a 12%, 60-day…

The maturity value of a 12%, 60-day note for $5,000 is $5,600. Please explain your answer with explanation. a. True b. False

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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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

The maturity value of a 12%, 60-day note for $5,000 is $5,600. Please explain your answer with explanation.

a. True

b. False

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