PLEASE RESOLVE THIS QUESTIONS FOR ME SOLUTIONS ALREADY SOLVED ARE RATED POORLY KINDLY RESOLVE THIS FOR ME ITS URGENT THANK YOU You have been promoted to head of Treasury and Investment Management at Ecobank and have been handed information on a number of issues for which immediate answers are required For each excerpt from the issues presented below answer the associated question(s) (i) Ecobank holds 450million T Bill but is in short of cash It needs cash to meet the requirement of a customer who has come to withdraw 400million Ecobank approach Barclays Bank to sell the T Bill for 395 5million on Monday morning with agreement to repurchase the bill on Friday evening (a) How much in cedis does Ecobank lose in this transaction (5 marks) (b) What is the Repo Rate on this transaction (5 marks) (ii) You have just been offered a commercial paper with a face value of 45,000,000 and a purchase price 40,000,000 which matures in 182 days What is the discount yield on this commercial paper (5 marks) (iii) Ecobank plans to issue a 2 year bond with a face value of 500,000,000 bearing 20 coupon rate The market interest rate is 25 The coupons are paid every six months You are to calculate the price of this bond

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PLEASE RESOLVE THIS QUESTIONS FOR ME. SOLUTIONS ALREADY SOLVED ARE RATED POORLY. KINDLY RESOLVE THIS FOR ME. ITS URGENT. THANK YOU You have been promoted

PLEASE RESOLVE THIS QUESTIONS FOR ME. SOLUTIONS ALREADY SOLVED ARE RATED POORLY. KINDLY RESOLVE THIS FOR ME. ITS URGENT. THANK YOU

You have been promoted to head of Treasury and Investment Management at Ecobank and have been handed information on a number of issues for which immediate answers are required. For each excerpt from the issues presented below answer the associated question(s):

(i) Ecobank holds 450million T-Bill but is in short of cash. It needs cash to meet the requirement of a customer who has come to withdraw 400million. Ecobank approach Barclays Bank to sell the T-Bill for 395.5million on Monday morning with agreement to repurchase the bill on Friday evening.

(a) How much in cedis does Ecobank lose in this transaction (5 marks) (b) What is the Repo Rate on this transaction? (5 marks)
(ii) You have just been offered a commercial paper with a face value of 45,000,000 and a purchase price 40,000,000 which matures in 182 days. What is the discount yield on this commercial paper? (5 marks)
(iii) Ecobank plans to issue a 2-year bond with a face value of 500,000,000 bearing 20% coupon rate. The market interest rate is 25%. The coupons are paid every six months. You are to calculate the price of this bond.