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5. A company wants to obtain funds to meet its financing needs short term. For that, it agrees with a financial institution to sell 5

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5. A company wants to obtain funds to meet its financing needs short term. For that, it agrees with a financial institution to sell 5 treasury bills of nominal 1000 euros, which it has in its portfolio, at the current interest rate of 4.5%, with the commitment to buy them back after 3 months at the rate prevailing at that time. The letters have 11 months left until the expiration. a) At what price will you sell the treasury bills to the financial institution? b) If the current interest rate within 3 months is 4.8% what amount will the company have to pay to buy back the bills? C) What has been the cost of financing the company

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