Question
1)A company has a bank loan outstanding that requires it to make annual payments of $1,000,000 at the end of each of the next three
1)A company has a bank loan outstanding that requires it to make annual payments of $1,000,000 at the end of each of the next three years. The bank has offered to the company to skip the next two payments and instead make a single payment at the end of the loan's term in three years' time. If the interest rate on the loan is 6% p.a., compounded quarterly, the final payment that will make the company indifferent between the two payment options is closest to:
Group of answer choices
$2,666,283.
$2,673,012.
$3,183,600.
$3,187,856.
2)
Ninety days ago, you purchased a 180-day Treasury bill with a face value of $100,000. At that time, the yield to maturity on the bill was 4.0% p.a. The current yield to maturity on the bill is 5.0% p.a. The price of the bill today is closest to:
Group of answer choices
$97,594.
$98,066.
$98,782.
$99,023.
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