Linus Ullmark loans Jeremy Swayman $400,000. Ullmark accepts a 7% note, which requires quarterly interest...
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Linus Ullmark loans Jeremy Swayman $400,000. Ullmark accepts a 7% note, which requires quarterly interest payments for 10 years. The day after receiving the 6th interest payment, Ullmark decides to sell the note to Rockland Trust. Rockland Trust agrees to purchase it to yield an 8% return.
A. What is the amount that Linus Ullmark will receive on the sale of the note to Rockland Trust?
B. Prepare the entries that Linus Ullmark and Rockland Trust will make on the day the note is sold to the bank.
Please show in terms on TVM calculations
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