4. (a) You are considering to invest in treasury bill of Malaysia which was

sold at price of RM92.97 with par value of RM100. The maturity period

of T-Bills is 90 days. Determine:

i. Bank Discount Rate (DR).

ii. Investment Rate (IR).

(b) A dealer in government securities plans to borrow money amounted to RM372 million from a credit union through five-week Repurchase

Agreements (RP) at an interest rate of 5.45 percent. Calculate:

i. Interest income.

ii. New Interest income if the interest rate on RP decreases by 10 percent

from the stipulated interest rate.

(c) Well Beauty Painting Corporation intends to purchase a

Negotiable Certificate of Deposit (NCD) amounted to RM850,000 at

interest rate of 8.25 percent. The firm will receive back of

RM867,531.25 after the NCD matures. Calculate:

i. Maturity period.

ii. New total amount that the firm will receive back when the NCD matures

if the interest rate increases to 10 percent

iii. New total amount that the firm will receive back when the NCD matures if

the firm decided to decrease the purchase amount of negotiable

certificate of deposit (NCD) to RM525,000.

(d) A commercial paper note with a par value of RM100,000 has a

purchase price of RM83,289, will be matured in 120 days. Calculate

the discount rate of commercial paper.

(e) Bankers Acceptance (BA) has a par value and market value of

RM1,000,000 and RM925,000 respectively. The bank discount rate is

announced at 12 percent. Calculate the maturity period of BA.