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A company issues a bank-accepted bill to fund a short-term business project. The bill is issued for 180 days, with a face value of $200
A company issues a bank-accepted bill to fund a short-term business project. The bill is issued for 180 days, with a face value of $200 000 and a yield of 9 per cent per annum. (a)What amount will the company raise to fund the project? After 33 days, the bank bill is sold by the original discounter into the money market for $193 015.90. The purchaser holds the bill to maturity. What is the return to: (b) the original discounter? (c) the holder at maturity?
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