Question
In: Accounting
ABC gives XYZ, Inc. a two-year, $1,000 note to ABC, Inc. to cover purchase of goods...
- ABC gives XYZ, Inc. a two-year, $1,000 note to ABC, Inc. to cover purchase of goods and services on 1/1/2017. The stated interest rate is 5% and the market rate for similar notes is 6%. Interest is payable semi-annually. Since the market rate is known, use it to value the note receivable.
Solutions
Expert Solution
The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.
ekkarill92 answered 1 year agoRelated Solutions
Assume there are two competitor firms, ABC and XYZ. ABC had no credit losses last year,...
Assume there are two competitor firms, ABC and XYZ. ABC
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Payment # Payment Interest principal
balance
1 469.70 100 369.70 19,630.30
2 469.70 98.15 371.55 19,258.75
3 469.70 96.29 373.41 18,885.34
____________________________
46 469.70 6.98 462.72 932.40
47 469.70 4.66 465.04 467.36
48 469.70 2.34 467.36 0.00
Required:
Show the journal entry that...
EXCEL VBA ABC company gives discount as follows: Purchase > $400
EXCEL VBA
ABC company gives discount as follows:
Purchase > $400
Discount rate = 5%
Purchase between $300 and
$400
Discount rate = 4%
Purchase >= $100 and <
$300
Discount rate = 2%
Purchase <
100
No discount
Purchase = Price * Quantity
Discount = Purchase * Discount
rate
Net Purchase = Purchase – Discount
Total Net Purchase is the running
total of Net Purchases
Create a user interface form as shown below. Use text boxes...
You purchase a 10-year T-note which has a par value of $1,000 and a yield-to-maturity of...
You purchase a 10-year T-note which has a par value of $1,000
and a yield-to-maturity of 8%. Its coupon rate is 9%. The price of
the T-note is ___.
A.
$1,067.95
B.
$993.46
C.
$1,103.28
D.
$1,090.03
You observe that the current yield curve is as follows:
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A.
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B.
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C.
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D.
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Suppose that ABC Corp and XYZ Inc are looking to borrow $350,000 and can issue 2-year...
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rates:
Firm
Market
Rate
ABC
Fixed
4.8%
ABC
Floating
LIBOR + 3.1%
XYZ
Fixed
6.3%
XYZ
Floating
LIBOR + 5.2%
Suppose that Citigroup is offering a
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APR and a floating payer in a swap...
You purchase a bond today issued by XYZ Manufacturing with a $1,000 par value and a...
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At what price did you sell the bond?
What was your total...
The following are selected transactions of XYZ Ltd: 12 July Sold goods on account to ABC...
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19 July Forwarded a credit note for
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21 July Received from ABC Ltd a
cheque in full settlement of the...
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cheque in full settlement of the...
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