A. Polycorp wishes to issue a 90 day bank bill with a face value of $2,000,000. If the current 90 day rate is 7% how much will Polycorp issue the bill for. Calculate to the nearest dollar.

B. Polycorp is about to issue debentures. The following information is available.

1.The coupon rate is 8% pa (or .08). Coupons are paid annually

2.The yield to maturity (YTM) is 0.09 pa

3.The face value is $100

4.The term is 4 years

How much can the debentures be issued for? Your answer should be accurate to the nearest cent.Notethat the YTM is expressed as a decimal, so .06 is 6% pa.

C. A non-redeemable preference share is paying a constant dividend of $4. What is the current price if the market yield for such shares is 10 %? Your answer should be calculated to the nearest cent, e.g. 23.167 should be entered as 23.17. Do not enter the $ sign.