Compare and contrast drafts and promissory notes

Assignment Help Financial Management

Reference no: EM131021546

1) Compare and Contrast Drafts and Promissory Notes. Be sure to include the identity of the parties on both instruments.

2) In order to make a Draft or a Note an acceptable cash equivalent for commercial transactions, the paper must

a) Have all of the magical ingredients on its face (qualify as a negotiable instrument)

b) Be transferred in a magical way (negotiated)

c) to a person with magical powers (Holder in Due Course).

Six requirements for (a)...what are they?

Reference no: EM131021546

Questions Cloud

What can you conclude about capital inflows : Examine this data. What can you conclude about government savings given this data? Explain your answer. Examine this data. What can you conclude about capital inflows into this economy? Explain your answer

According to the constant dividend growth model : A share of stock will pay a dividend of $1.6 one year from now, with dividend growth of 5 percent thereafter. According to the constant dividend growth model, if the required return is 14.7 percent, what should the value of the stock be 2 years from ..

Why does google care whether people think it large or small : Google rejects the idea that it's in the search advertising business, an industry in which it holds more than a 70 percent share of revenue. Instead, the company says its competition is all advertising, a category broad enough to include newspaper..

What was your total return for the past year : You purchased a zero coupon bond one year ago for $173.85. The market interest rate is now 9 percent. If the bond had 20 years to maturity when you originally purchased it, what was your total return for the past year? Assume semiannual compounding.

Compare and contrast drafts and promissory notes : Compare and Contrast Drafts and Promissory Notes. Be sure to include the identity of the parties on both instruments. In order to make a Draft or a Note an acceptable cash equivalent for commercial transactions, the paper must. Have all of the magica..

Bond equivalent yield and discount yield : The treasurer of a large corporation wants to invest $35 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 4.39 percent; that is, the EAR for this investment is 4.39 per..

What factors make up yield for bonds : What is “Yield”? How is it calculated? What factors make up yield for bonds? What factors make up yield for stocks? What impact does inflation have on yield?

Reduce moral hazard within the traditional leave system : Jan Czyrmer, the employee benefits manager at Ludlow Enterprises, wants to restructure the leave policy for the company. He is concerned that employees abuse the sick leave policy, taking sick leave time for personal reasons not related to illness. I..

Calculate the unemployment rate for this population : Suppose that the government reclassifies people who are discouraged workers as unemployed workers at the same time that they also decide to count as unemployed any workers who are working part- time while preferring to work full-time. Calculate th..

User Account

All Pages