Suppose you purchase a bank accepted bill with a face value of $100,000. It has 120 days to maturity and is trading at an interest rate of 8% pa. 1.1 What was the purchase price today (Day 0)?1.2 Suppose you sell the BAB 30 days later. What was the sale price, if the interest rate was 8.0%? 1.3 (Still assuming 30 days later) What was the sale price if the interest rate was 7.5%?

Suppose you purchase a bank accepted bill with a face value of $100,000. It has 120 days to maturity and is trading at an interest rate of 8% pa. 1.1 What was the purchase price today (Day 0)?1.2 Suppose you sell the BAB 30 days later. What was the sale price, if the interest rate was 8.0%? 1.3 (Still assuming 30 days later) What was the sale price if the interest rate was 7.5%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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