What should be the selling price of the note

Assignment Help Financial Management

Reference no: EM131904241

A six-year $5300 promissory note is agreed upon on February 12th, 2014, accruing an rate of 7.9% compounded semi-annually. The owner of the note sells it to a buyer on March 3rd, 2017 for an amount that will grant the buyer a rate of 8.5% compounded quarterly. What should be the selling price of the note?

Reference no: EM131904241

Questions Cloud

Cost of equity raised by selling new common stock : what is the component cost of the equity raised by selling new common stock? what is the firm's WACC?

What are the dividend yield and percentage capital gain : What is the total rate of return on the stock? What are the dividend yield and percentage capital gain?

Sales contract agreeing to deliver motorcycle : Wheel Sports Center entered into a sales contract agreeing to deliver a motorcycle to Ramos for the price of $893.

Calculate the expected npv : Calculate the expected NPV. Would you build the plant?

What should be the selling price of the note : What should be the selling price of the note?

Break-even level of sales if the firm pays no taxes : What is the accounting break-even level of sales if the firm pays no taxes?

Common carrier with instructions to deliver them to brown : Eberhard placed the goods on board a common carrier with instructions to deliver them to Brown. The goods were lost in transit.

Harnois claimed that the contract was unenforceable : Harnois claimed that the contract was unenforceable because it was not in writing. Do you agree with Harnois? Why or why not?

What is average cash flow you will receive from mine : What is the average cash flow you will receive from the mine if it is always kept in operation and the silver always is sold in the year it is mined?

User Account

All Pages