Question
Coco borrowed money for 2 years, but the contract did not announce an interest rate. It simply offered to sell each IOU for 985.25. What
Coco borrowed money for 2 years, but the contract did not announce an interest rate. It simply offered to sell each IOU for 985.25. What is the interest rate? What was the par value used in your calculation?
(Tick two right answers)
| interest rate is 0.75% | ||
| Interest rate is 0.0074% | ||
| Par value was 1,000 | ||
| Par value was 985.25 | ||
| Par value is 985.25 multiplied by 2 years | ||
| Check the two correct answers. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Institutions Management
Authors: Anthony Saunders
3rd Edition
007303259X, 978-0073032597
