A bankers' acceptance is discounted by Canmex Inc. at 98.71 of par. It matures in 60 days.

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A bankers' acceptance is discounted by Canmex Inc. at 98.71 of par. It matures in 60 days.
a. What is the cost to the company on a nominal basis?
b. What is the effective annual cost to the company?

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Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Question Posted: Sep 14, 2018 01:21 PM

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A bankers' acceptance is discounted by Canmex Inc. at 98.71 of par. It matures in 60 days.

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Foundations of Financial Management

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