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Q3. On 1 September 2022 a company raises finance by agreeing a six-month eurodollar loan for $10 million offered at an interest rate of 3.8
Q3. On 1 September 2022 a company raises finance by agreeing a six-month eurodollar loan for $10 million offered at an interest rate of 3.8 per cent. Calculate the cost of the loan in dollars. (a) on a 30/360-day count basis (180 days) (b) on a 365-day count, actual/365 basis (183 days) Q4. You purchase $1,000,000 worth of six-month US Treasury bills on the secondary market with a quoted yield per annum of 1.94 per cent. The bills have 100 days to maturity. How much would you pay? Use the actual/365-day count convention
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