A negotiable investment certificate of face value of $15,000 with a term of 300 days, is sold to the public through a discount rate of 12.2%. If you buy the certificate, Determine: a) Value of the investment b) the rate of return. Answers a) $13,475 b) 13.5807% In the previous exercise, suppose that you sell the document 145 days later and it is discounted at 12.4% and you also pay commissions of 0.5% to both the stockbroker and the stockbroker. Determine a) the equity you receive b) the interest rate cost effectiveness. Answers a) $14,057.17 b) 10.7226%