A bankers' acceptance is discounted by Canmex Inc. at 98.71 of par. It matures in 60 days.
Question:
A bankers' acceptance is discounted by Canmex Inc. at 98.71 of par. It matures in 60 days.
a. What is the cost to the company on a nominal basis?
b. What is the effective annual cost to the company?
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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