Question
A) You want to earn 15.8% p.a in order to satisfy your capital providers. If a 91 day T-Bill has a face value of R
A) You want to earn 15.8% p.a in order to satisfy your capital providers. If a 91 day T-Bill has a face value of R 1000. What is the price that you will pay for the T-Bill in order to satisfy your capital providers?
B) You have a 98 day NCD with a coupon of 4.52%, and a nominal value of R1000. What is the maturity value of the NCD?
C) There is a 91 day bankers' acceptance worth R 50000000. The discount rate is 9.95%. Historic returns for bankers' acceptances are 8.82%. If there is an acceptance commission of 1.5% what is the price of the bankers' acceptance?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
A To calculate the price you will pay for the TBill we need to use the formula for the relationship ...
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Step: 2
Step: 3
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Industrial Organization Markets and Strategies
Authors: Paul Belleflamme, Martin Peitz
2nd edition
1107069971, 1107069978, 978-1107069978
