Our company has Treasury bills in its portfolio for a nominal value of 300,000 euros, were acquired
Question:
Our company has Treasury bills in its portfolio for a nominal value of 300,000 euros, were acquired at auction at 7.75% interest and with maturity
92 days (take 10,000 as nominal per letter).
Ten days after the auction, the company finds that it must carry out
in the following 15 days payments for 196,450 euros, not having available at that time, Thus, it is decided to sell Letters for that value, taking into account Note that at the moment you can get for them up to a that right now you can get by them up to 7.9335% interest in the secondary market.
The intention is that, after the payment period has been completed, the company acquires those Letters at 9.35% interest.
The total expenses of the sale are the 2 per thousand of the nominal and are paid at the end of the simultaneous negotiation.
2 per thousand of the nominal and are paid at the end of the simultaneous negotiation.
What would the cost of the operation be?
Expert Answer:
To calculate the cost of the operation we need to consider the following steps 1 Determine the amoun... View the full answer
