A firm in need of medium-term funding for approximately 1.5 years issues an $10, 800, 000...
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A firm in need of medium-term funding for approximately 1.5 years issues an $10, 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 5.34%, what proceeds will the firm receive for the primary issue of the bill? $ (Round to 2 decimal places, and don't insert a comma into your answer. For example, use 1000, not 1,000) (b) On the first roll-over, if the yield at that time was 6.29%, 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, and don't insert a comma into your answer. For example, use 1000, not 1,000) $ A firm in need of medium-term funding for approximately 1.5 years issues an $10, 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 5.34%, what proceeds will the firm receive for the primary issue of the bill? $ (Round to 2 decimal places, and don't insert a comma into your answer. For example, use 1000, not 1,000) (b) On the first roll-over, if the yield at that time was 6.29%, 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, and don't insert a comma into your answer. For example, use 1000, not 1,000) $
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a The proceeds the firm will receive for the primary issue of ... 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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