3 A trader receives from a customer a Bill of Exchange set to mature in six months,...
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3 A trader receives from a customer a Bill of Exchange set to mature in six months, and decides, after two months, to sell it to a bank. The face value is 200,000 and the bank discounts the Bill for 195,500. What effective annual interest rate is the trader paying to accelerate receipt of his money?
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Corporate Finance And Investment Decisions And Strategies
ISBN: 9780273695615
5th Edition
Authors: Richard Pike, Bill Neale
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