In order to find it's short - term operations , the Chief Financial Offour ( CFO ) of Best Company has decided use short - term money market instruments* The CFO has asked you to advise the company of the best course of action . After a lengthy discussion with the CFO , it was decided to issue bank- accepted bills of exchange ( bank hills ) . In order to obtain board approval . the CFO has asked you to create a simple spreadsheet to illustrate the immediate factors ( such as interest rates , foes and charges ) that affect the amount of funds raised , and ultimate effective cost to Best Company of issuing the bank bills .\ Create a simple spreadsheet for calculating bank will prices and the of fictive cast of raising funds through the issue of bank bills allowing for fees and charges . Users of the spreadsheet should be able to input the following :` `. The face The of the bank bill ( the dollar amount to he paid to the holder at maturity ] .` 6 . The term to maturity at issue ( in days) . C . The market yield on the purchase date expressed as a simple rate of interest (`/ }.A. J . . d . Fees and charges ( the dollar amount to be paid by the issuer of the bank bills ) . c. When the fees and charges are to be paid ( either at issue or maturity* !* Once You have defined your inputs , Your spreadsheet should out put the following .` `. The grass amount of funds raised [i.e ., the issue price of the hank hill ; . This does not allow for foes and charges . ` . The net amount of funds raised ( which means the amount of funds raised after deduction of fees and charges , if appropriate ) . C . The gross out go at maturity ( that is the amount that has to be paid! at maturity including fees and charges , if appropriate ! I . The real cost of borrowing , allowing for the fees and charges ( remember* when you are issuing bank bills you are borrowing money ) . Express this as a rate of simple interest ( p. . ) , rounded to two decimal places . in percentage form .` C. Add to your spreadsheet " graph or chart ( choose the type you think will he must suitable ) to compare* " the issuer's borrowing costs ( with no allowance for fees and charges . i.e., zero fees and charges ) with Please turn overIn order to find it's short - term operations , the Chief Financial Offour ( CFO ) of Best Company has decided use short - term money market instruments* The CFO has asked you to advise the company of the best course of action . After a lengthy discussion with the CFO , it was decided to issue bank- accepted bills of exchange ( bank hills ) . In order to obtain board approval . the CFO has asked you to create a simple spreadsheet to illustrate the immediate factors ( such as interest rates , foes and charges ) that affect the amount of funds raised , and ultimate effective cost to Best Company of issuing the bank bills .\ Create a simple spreadsheet for calculating bank will prices and the of fictive cast of raising funds through the issue of bank bills allowing for fees and charges . Users of the spreadsheet should be able to input the following :` `. The face The of the bank bill ( the dollar amount to he paid to the holder at maturity ] .` 6 . The term to maturity at issue ( in days) . C . The market yield on the purchase date expressed as a simple rate of interest (`/ }.A. J . . d . Fees and charges ( the dollar amount to be paid by the issuer of the bank bills ) . c. When the fees and charges are to be paid ( either at issue or maturity* !* Once You have defined your inputs , Your spreadsheet should out put the following .` `. The grass amount of funds raised [i.e ., the issue price of the hank hill ; . This does not allow for foes and charges . ` . The net amount of funds raised ( which means the amount of funds raised after deduction of fees and charges , if appropriate ) . C . The gross out go at maturity ( that is the amount that has to be paid! at maturity including fees and charges , if appropriate ! I . The real cost of borrowing , allowing for the fees and charges ( remember* when you are issuing bank bills you are borrowing money ) . Express this as a rate of simple interest ( p. . ) , rounded to two decimal places . in percentage form .` C. Add to your spreadsheet " graph or chart ( choose the type you think will he must suitable ) to compare* " the issuer's borrowing costs ( with no allowance for fees and charges . i.e., zero fees and charges ) with Please turn over
