Calculate the value of the simple commercial discount in the following situations: Nominal value of the security Discount rate Maturity period a)$25.000 36%per year 45 days b)$36.000 24%per year 180 days c)$14.500 30%per year 2 months
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Calculate the value of the simple commercial discount in the following situations:
| Nominal value of the security | Discount rate | Maturity period |
| a)$25.000 | 36%per year | 45 days |
| b)$36.000 | 24%per year | 180 days |
| c)$14.500 | 30%per year | 2 months |
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- You purchase a three-month discount security (e.g., a Treasury bill or commercial paper) for $0.9878 on $1 (i.e., $98,780 for $100,000 face amount). What are the discount yield, the simple annual yield, and the annual compound yield earned by the investment?Suppose that the 9-month and 12-month LIBOR rates are 4% and 4.2%, respectively. What is the value of an FRA where 5% is received and LIBOR is paid on £1 million for the quarterly period? All rates are quarterly compounded and expressed as per annum. Assume that LIBOR is used as the risk-free discount rate. Select one: a. £478.115 b. £422.870 c. £479.062 d. £426.132The approximate effective cost (EC) of financing the discount price of trade credit under terms 2/10, net/30 using a 360 day year is?
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- Find the present values of these ordinary annuities.Discounting occurs once a year.a. $600 per year for 12 years at 8%b. $300 per year for 6 years at 4%c. $500 per year for 6 years at 0%d. Rework parts a, b, and c assuming they are annuities due.Find the present values of these ordinary annuities. Discounting occurs once a year. a. $600 per year for 12 years at 8% b. $300 per year for 6 years at 4% c. $500 per year for 6 years at 0% d. Rework parts a, b, and c assuming they are annuities due.You have purchased a $1,000 Face Value, 9-month (270-day) Treasury-bill (T-bill) with a quoted market discount yield equal to 5.25%. What is the annual money market yield for this 270-day T-bill?
