1. You purchase a $13,000 3.875% Treasury bond maturing November 27, 2042. The bond is priced to yield 1.125% and settles January 10, 2017.
The base price of the bond is
Accrued Interest adds
The invoice price is thus
2. The operating cycle:
1-illustrates the sources and uses of cash.
2-is equal to the cash cycle plus the accounts receivable period.
3-describes how a product moves through the current asset accounts.
4-begins when a product is sold to a customer.