=6/ A company treasurer invests 100 for 18 months. The first bank he approaches offers to reinvest
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=6/ A company treasurer invests 100 for 18 months. The first bank he approaches offers to reinvest the funds at 0.8% per quarter, and the second bank at 1.6% per half-year.
Without actually doing the calculation, show how the first bank’s offer would be the best option. What are the two yields to maturity?
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Related Book For
Corporate Finance Theory And Practice
ISBN: 9781118849330
4th Edition
Authors: Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi
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