Problem 9-3: Cost of trade credit
Using a 360-day year, compute the cost of trade credit for each of the following:
(1) 1/10, net 30
(2) 2/15, net 45
(3) 3/15, net 60
Problem 9-4: Bond valuation
Calculate the value of the bonds in each situation below:
				Current
Interest	Par/Face	Coupon	Years to	Interest
Paid	Value (SAR)	Rate	Maturity	Rates
Annually	10,000	6%	10	8%
Semi-annually	10,000	6%	10	7%
Annually	10,000	4%	15	5%
Semi-annually	10,000	8%	20	10%
Semi-annually	10,000	8%	20	6%
Problem 9-5: Bond interest rates
What is the current annual interest rate on bonds that sell for the following?
Current	Par/Face	Coupon	Years to
Price (SAR)	Value (SAR)	Rate	Maturity
12,842	10,000	6%	10
7,850	10,000	4%	15
10,000	10,000	8%	20