Question
A bank accepts a deposit for $50 million by issuing a 90-day NCD with interest at 6%. (a) What is the NCDs face value? (b)
A bank accepts a deposit for $50 million by issuing a 90-day NCD with interest at 6%.
(a) What is the NCDs face value?
(b) The depositor decides to sell the NCD at a market yield of 6.5% after holding it for 55 days. What proceeds do she receive?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
