Question
The loan value is equal to 494 940.00 PLN. The period of the loan is 4 months (compound capitalization). The loan interest rate is equal
The loan value is equal to 494 940.00 PLN. The period of the loan is 4 months (compound capitalization). The loan interest rate is equal to 3.08% p.a. The loan will be repaid once. The commission is equal to 0.2% of the loan value and it reduces the amount of loan funds. The loan funds were used to purchase 4-month treasury bills. The annual discount yield is equal to 3.64%. The nominal value of treasury bill is equal to 10 000 PLN. Unused loan funds for purchase treasury bills will be placed on a 4-month term deposit with an interest rate of 2.0% (4-month capitalization). Calculate:
- the loan future value, (4 points)
- the number of purchased treasury bills and treasury bill price, (10 points)
- the result on this operation (6 points)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started