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. c. An investor John has purchased this bank bill on 1 January 2017 at the yield rate of 6.45% p.a.and sold it on 12 March 2017 at the yield rate of 6.2% p.a. What is his sale price (rounded to two decimal places)? Select one: a. 980932.29 b. 981657.79 c. 970331.77 d. 988249.31
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. c. An investor John has purchased this bank bill on 1 January 2017 at the yield rate of 6.45% p.a.and sold it on 12 March 2017 at the yield rate of 6.2% p.a. What is his sale price (rounded to two decimal places)? Select one: a. 980932.29 b. 981657.79 c. 970331.77 d. 988249.31
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 19P
Related questions
Question
100%
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.
c. An investor John has purchased this bank bill on 1 January 2017 at the yield rate of 6.45% p.a.and sold it on 12 March 2017 at the yield rate of 6.2% p.a. What is his sale price (rounded to two decimal places)?
Select one:
a. 980932.29
b. 981657.79
c. 970331.77
d. 988249.31
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning