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Money Market Investment Instruments 14. Kofo Tolz, the securities dealer of ISI Crown Bank, still has surplus funds, which she intends to invest in government

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Money Market Investment Instruments 14. Kofo Tolz, the securities dealer of ISI Crown Bank, still has surplus funds, which she intends to invest in government securities. She concludes a deal with Peace Commercial Bank to buy N300 million 91-day Treasury Bills with 63 days to maturity at a discount rate of 6.75%. a. How much does Peace Commercial Bank expect in settlement for the trade? b. What is the discounted value of the original Treasury bill? c. Distinguish between discount rate and the effective rate of interest. What is the effective rate of interest of the investment for ISI Crown Bank, if there is a processing fee of 0.30% on every investment in government securities

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