A firm in need of medium-term funding for approximately 1.5 years issues an $13, 800, 000...
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A firm in need of medium-term funding for approximately 1.5 years issues an $13, 800, 000 commercial bill with a 180-day rollover facility provided by a commercial bank. Assume 365 days in a year. (a) If the yield at issue is 5.28%, what proceeds will the firm receive for the primary issue of the bill? $ (Round to 2 decimal places. Comma separators not required) (b) On the first roll-over, if the yield at that time was 6.23%, how much will the firm have to pay the bank to execute the roll-over facility (i.e., the rollover fee)? $ (Round to 2 decimal places. Comma separators not required) A firm in need of medium-term funding for approximately 1.5 years issues an $13, 800, 000 commercial bill with a 180-day rollover facility provided by a commercial bank. Assume 365 days in a year. (a) If the yield at issue is 5.28%, what proceeds will the firm receive for the primary issue of the bill? $ (Round to 2 decimal places. Comma separators not required) (b) On the first roll-over, if the yield at that time was 6.23%, how much will the firm have to pay the bank to execute the roll-over facility (i.e., the rollover fee)? $ (Round to 2 decimal places. Comma separators not required)
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a The proceeds that the firm will receive for the primary issue of the bill can be calculated using ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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