Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Question 1 A company wants to raise funds by issuing a 180-day $1,000,000 bank bill on 1 January 2017 at a yield rate of 6.45%
Question 1
A company wants to raise funds by issuing a 180-day $1,000,000 bank bill on 1 January 2017 at a yield rate of 6.45% p.a. (simple interest rate). The company incurs fees and charges amounting to $12,000.
a. Find the real cost (as a rate of simple interest % p.a., rounded to 2 decimal places) of raising the funds, allowing for the fees and charges payable at maturity.
Select one:
a. 8.96%
b. 2.43%
c. 6.45%
d. 6.53%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started