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 2 years 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
had no credit losses last year, but 1% of XYZ’s accounts receivable
proved to be uncollectible and resulted in losses. Can you
determine which firm’s credit manager is performing better? Why or
why not? (2pts)
Indicate by a (+), (-), or (0) whether each of the
following events would most likely cause A/R, sales, and profits to
increase, decrease, or be affected in an indeterminate manner. Also
provide an explanation...
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 had no
credit losses last year, but 2% of XYZ’s accounts receivable proved
to be uncollectible and resulted in losses. Should XYZ fire its
credit manager and hire ABC’s? Defend your response. (2pts)
Indicate by a (+), (-), or (0) whether each of the following
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decrease, or be affected in an indeterminate manner. Also provide
an explanation for each event...
XYZ company bought equipment for $20,000 by signing a 4-year note with ABC savings bank. XYZ’s...
XYZ company bought equipment for $20,000 by signing a
4-year note with ABC savings bank. XYZ’s borrowing rate was 4% and
the monthly payments are $469.70. The lending officer at the bank
prepared the following amortization schedule:
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:
r0.5=5.5%, r1=5.6%, r1.5=5.8%, r2=6%, r2.5=6.3%, r3=5.9%. Based on
the expectations theory, what is the 6-month forward rate (quoted
per annum) six months from today?
A.
5.7%
B.
5.4%
C.
5.9%
D.
5.3%
Suppose that ABC Corp and XYZ Inc are looking to borrow $350,000 and can issue 2-year...
Suppose that ABC Corp and XYZ Inc are looking to borrow
$350,000 and can issue 2-year debt at the following market
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
1.3%/1.6% bid-ask spread on two-year swaps. That is, they are
offering to be the fixed payer in a 2-year swap at a rate of 1.3%
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...
You purchase a bond today issued by XYZ Manufacturing with a
$1,000 par value and a coupon rate of 6%. The bond matures in 6
years, pays annual coupons, and the yield to maturity is 8% when
you purchase the bond. Suppose you sell the bond one year from
today and the yield of maturity at that time is 6%.
What was your purchase price for the bond?
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...
The following are selected transactions of XYZ Ltd:
12 July Sold goods on account to ABC Ltd
for $2400, terms 3/10, n/30. The cost of the goods sold was
$1600.
19 July Forwarded a credit note for
$180 to ABC Ltd covering part of the goods sold on 12 July, which
cost $120, that were returned by ABC Ltd as inappropriate. The
goods returned were not defective.
21 July Received from ABC Ltd a
cheque in full settlement of the...
The following are selected transactions of XYZ Ltd: 12 July Sold goods on account to ABC...
The following are selected transactions of XYZ Ltd: 12 July Sold
goods on account to ABC Ltd for $3750, terms 1/10, n/30. The cost
of the goods sold was $2500. 19 July Forwarded a credit note for
$300 to ABC Ltd covering part of the goods sold on 12 July, which
cost $200, that were returned by ABC Ltd as inappropriate. The
goods returned were not defective. 21 July Received from ABC Ltd a
cheque in full settlement of the...
Two companies, ABC and XYZ, are considering entering into a swap. Company ABC can borrow at...
Two companies, ABC and XYZ, are considering entering into a
swap. Company ABC can
borrow at a fixed rate of 8.1% or, alternatively LIBOP + 1.3%.
Company XYZ faces a fixed rate of
7.5% and a floating rate of LIBOR + 0.3%.
a) Suppose that company ABC wants a floating rate loan, while
company XYZ wants a
fixed rate loan. Is there a basis for a swap? If so, set up the
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