valuing bankers' acceptances

Project Description:

5) aix , a mutual fund company plans to buy a bankers' acceptances issue that is about to be sold by notel , a large high tech company. the par value of the issue is $100 million and aix's investment dealer indicate aix would have to pay$99,062,031.83 for the issue. if the issue matures in 90 days, what rate of return would aix receive on the issue?





solve question 6 part a,b,c,d,e please show a details as i like to see how is it done



6) for problem 5 assume aix purchased the bankers' acceptances issue. after 24 days, aix realized they required money to meet redemption request from the holders of the mutual funds. aix approaches their investment dealers, who indicate to them that yields on bankers' acceptances in the secondary market have increased to 4.025 %.

a) how much would aix receive if they sold full issue of bankers' acceptances? how much did they make on the original purchase of the paper?

b) how much would aix made if yields did not change between the date of purchase and sale?
c)how much would aix made if yields declined to 3.61 % between the date of purchase and sale?
d) base on the above, discuss the possible risks and rewards of trading money market securities in the secondary market?
e) what would cause yields on money market securities to change?
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