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A 100,000 face value Italian-issued (i.e., Euro-denominated) discount security with a standard 180-day maturity has 53 days to maturity was issued at a discount rate
A 100,000 face value Italian-issued (i.e., Euro-denominated) discount security with a standard 180-day maturity has 53 days to maturity was issued at a discount rate of 2.22% but is now trading at a rate of 2.78%
Assume 360 days in a year.
(a) What price was the security issued at?
(Round to 2 decimal places)
(b) What price is the security currently trading at?
(Round to 2 decimal places)
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