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show complete workings and final answer! A student attempted the following question but unfortunately made a few mistakes in his/her work. A 180 day Commercial
show complete workings and final answer!
A student attempted the following question but unfortunately made a few mistakes in his/her work. A 180 day Commercial Bill with a Face Value of $100,000 was traded in the market 90 days after it was first issued. Current rates are 90 days at 3%pa 120 days at 3.5%%pa 180 days at 4%pa What price was the bill traded at? The student's attempt: The price of the bill is 100,000 PV = 1 98532.93 (10 (1+3) Your task: 1) Identify what mistakes did the student made in the above calculation 2) What should have been the correct answer here (No working/equation is required) Step by Step Solution
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