Assume you received note receivable of 5,000,000 carrying 12% nominal interst rate for a period of...
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Assume you received note receivable of 5,000,000 carrying 12% nominal interst rate for a period of 6 years. Note pays interest semi annual. On the date of receipt, market rate for similar note is 10%. 1. Is the note at premium/discount? 2. Compute for interest income on the second year 3. Compute for interest income on the third year. 4. How much money will be received on the 6th year? Assume you received note receivable of 5,000,000 carrying 12% nominal interst rate for a period of 6 years. Note pays interest semi annual. On the date of receipt, market rate for similar note is 10%. 1. Is the note at premium/discount? 2. Compute for interest income on the second year 3. Compute for interest income on the third year. 4. How much money will be received on the 6th year? Assume you received note receivable of 5,000,000 carrying 12% nominal interst rate for a period of 6 years. Note pays interest semi annual. On the date of receipt, market rate for similar note is 10%. 1. Is the note at premium/discount? 2. Compute for interest income on the second year 3. Compute for interest income on the third year. 4. How much money will be received on the 6th year?
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Analyzing the Note Receivable 1 PremiumDiscount Effective interest rate The market rate of 10 semian... View the full answer
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