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Health Co. wants to raise approximately $150,000 for a short-term project and only require funds for 60 days. The 60 bank-bill rate is 4.2%p.a. To
Health Co. wants to raise approximately $150,000 for a short-term project and only require funds for 60 days. The 60 bank-bill rate is 4.2%p.a. To raise the funds, Health Co. approaches Dud Bank who has agreed to accept the bill for a fee of 300 basis points.
a. How much will Health Co receive?
b. How much does the investor pay?
c. How much does Dud Bank receive?
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Handbook Of Modeling High Frequency Data In Finance
Authors: Frederi G. Viens, Maria Cristina Mariani, Ionut Florescu
1st Edition
