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(i) What contributions does the money market make to the financial system? (4 marks) (ii) A company issues 90-day bank bills with a face value
(i) What contributions does the money market make to the financial system? (4 marks) (ii) A company issues 90-day bank bills with a face value of $2000000. The bank acting as acceptor charges a fee of 90 basis points. The BBSW at the time of issue is 6.3 per cent. A. A fund manager purchases the bills in the primary market. How much do they pay? B. How much does the company receive? C. Calculate the fee earned by the acceptor
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