Angela made an 180-day investment arrangement involving two consecutive 90 day $100,000 bank bills. The maturity proceeds of the first bill will be used to purchase the second bank bill. The remain surplus cash after 90 days will be invested at 2.071% p.a. simple interest rate. The yield rate of first bank bill is 2.443% p.a. simple interest rate and the yield rate of second bank bill is 2.671% p.a. simple interest rate. a) What is price of first bank bill? Round your answer to three decimal places. a. 99401.223 b. 99345.706 c. 99397.616 d. 99491.937

Angela made an 180-day investment arrangement involving two consecutive 90 day $100,000 bank bills. The maturity proceeds of the first bill will be used to purchase the second bank bill. The remain surplus cash after 90 days will be invested at 2.071% p.a. simple interest rate. The yield rate of first bank bill is 2.443% p.a. simple interest rate and the yield rate of second bank bill is 2.671% p.a. simple interest rate. a) What is price of first bank bill? Round your answer to three decimal places. a. 99401.223 b. 99345.706 c. 99397.616 d. 99491.937

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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