Find the bank discount on (a) $2000 for 120 days at 15%, (b) $10 000 for 91 days at 9.83%, (c) $5000 from April 21 to May 17 at 12 1/2 %. Ans. (a) $100: (b) $248.48: (c) $45.14 At 12 3/4% bank discount, find the value today of (a) $1500 due in 9 months, (b) $10 000 due in 182 days. Ans. (a) $1356.56: (b) $9355.42 Find the value today of the obligations in Problem 3.74 at 12 3/4% simple interest. Ans. (a) $1369.08: (8) $9394.45 A bank charges 13 1/2% interest in advance on short-term loans. Find the sums received by borrowers who request (a) $1500 for 6 months, (b) $2800 from June 1 to September 18, (c) $5000 from March 15 to November 7. Ans. (a) $1398.75: (b) $2685.55: (c) $4555.62 What rates of simple interest did the borrowers pay in Problem 3.76? Ans. (a) 14.48%: (b) 14.08%: (c) 14.82% What is the interest rate equivalent to a discount rate of (a) 10% for 1 year? (b) 15% for 9 months. Ans. (a) 11.11%: (b) 16.90% Robert borrows $1000 for 8 months from a lender who charges a 16% discount rate. (a) How much money does Robert receive? (b) What size of loan should Robert ask for in order to receive $1000 cash? (c) What is the equivalent simple interest rate he pays on the loan? Ans. (a) $893.33: (b) $1119.40: (c) 17.91% A company issued a $2 million piece of commercial paper to mature on August 1. The paper is purchased by an investor on June 3. Find the purchase price if based on a discount rate of 11%. Ans. $1 963 944.44 The investor in Problem 3.80 sells the paper on July 12 at a price that will yield the new buyer 10%, on a discount basis. Find the purchase price. Ans. $1 988 888.89 An investor purchased a $100 000, 182-day Treasury bill at a bid price of 94.100. Find the yield (a) on a bank discount basis, (b) on a simple interest basis, if the investor holds the bill to maturity. Ans. (a) 11.67%: (b) 12.40% The investor in Problem 3.82 held the bill for 80 days and then sold it in the secondary market at 10 3/4% bank discount. Find (a) the proceeds of the sale, (b) the interest rate earned by the investor during the period he held the bill, (c) the yield the new buyer will get, on an interest basis, if he holds the bill to maturity. Ans. (a) $96 954.17: (6) 13.65% (c) 11.09% PROMISSORY NOTES Find the maturity date and maturity value of each of the following promissory notes