A money market dealer's bid and offer quotes are 6.75% - 6.56%. Calculate the trading profit (in $) from a round-trip transaction on $100,000 face value 180-day bills.
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- еВook Zane Corporation has an inventory conversion period of 90 days, an average collection period of 34 days, and a payables deferral period of 48 days. Assume 365 days in year for your calculations. a. What is the length of the cash conversion cycle? Round your answer to two decimal places. days b. If Zane's annual sales are $3,454,540 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. How many times per year does Zane turn over its inventory? Assume that the cost of goods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio. Do not round intermediate calculations. Round your answer to two decimal places.The current spot rate for USD/GBP is 1.058 1.086. If you were to buy £4,799,207 worth of dollars and then sell them five minutes later, how much would the dealer make on your transactions? IGiven: A dealer purchased treasury bills at 10%, 164 days, $10,000,000. What is the purchase price and discount of the dealer? Same figures that he transfer to an investor at the rate of 12%, after 6 days of purchase. What is the purchase price and discount of the investor?
- Honesty Company is investing in 182-day treasury bills with a total fair market value of P2,500,000 for a purchase price of P2,475,000.What is the annualized investment rate (round off your answer to two decimal places)A merchant sells a product on credit for S/ 50,000 and offers to pay it to a client in three bills of equal nominal value and with maturities at 45, 75 and 105 days respectively, applying on them an APR of 30% with bimonthly capitalization. If this merchant plans to discount the bills in a bank 15 days after the sale is made, being the effective discount rate 2% per month, find: 1. The face value of the bills.2. The net cash value received on discounting the bills.3. Calculate the discount.An investor buys a $10,000 face value T-bill at a bank discount quote of 5.76% with 175 days to maturity. The investor's actual annual rate of return on this investment is _____. Group of answer choices 4.80% 4.97% 6.01% 6.64%
- Below are two T-Bill purchases: A T-Bill with a face value of $900,000 and current market price of $850,000. The maturity date is in 250 days. A T-bill has a face value of $600,000, a current market price of $570,000 and matures in 200 days. Please calculate for both T-bill purchases based on the following: (a) What is the bank discount yield? Calculate the holding period yield Calculate the Effective Annual Yield Calculate the Money Market Yield (b)Explain why the Effective Annual Yield is greater than the Bank Discount YieldAn investor purchases a 90-day bank bill with a face value of$1million at4.88% . Caliculate the capital gain or loss (in $) from their investment if the bill is sold 10 days later at 4.55% .A car dealer carries out the following calculations. What is the annual percentage rate? Lis price: $5,227.00 , Options: $1,625.00, Destination charges: $200.00 , Subtotal: $7,052.00, Tax: $431.58 Less trade in: $2,932.00, Amount to be financed: $4,691.03, 10% interest for 48 months: $1,501.63, Total: $6,192.66, Monthly payment: $129.00 Please round your answer to one decimal place(tenth place). Enter only the number without % sign.
- An investor purchases a 90-day bank bill with a face value of $1 million at 4.88%. Calculate the capital gain or loss (in $) from their investment if the bill is sold 10 days later at 4.55%.A. DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for the coming year. The supplier is offering a credit term of 3/15, n/45. How much is the simple annual effective cost of paying on the 45th day? B. ABC can take a 45-day loan with a 15% interest deducted in advance, to be reapplied each time. How much is the simple annual cost of the loan? C. ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000. How much is the compounded annual effective cost of the bank loan?If a 91-day T-Bill (bill-A) with face value Rs.1000, issued exactly 10 days ago, is trading at Rs.988.40 and a T-Bill (bill-B) issued today is trading at Rs.987.00. (Assume actual/360 day-counting convention) a)Find the yields of bill-A and bill-B.b)Which one shall you buy? Cite reason