Question: Question 4 Ebony Ltd issues a bank accepted bill to fund its working capital requirement. The bill is issued for 90 days, with a face

Question 4

Ebony Ltd issues a bank accepted bill to fund its working capital requirement. The bill is issued for 90 days, with a face value of $300,000 and a yield of 4.0% per annum. How much will be raised by the company?

After 42 days, the bank bill is sold by the original discounter into the secondary market for $290,300. The purchaser holds the bill to maturity. What is the yield (per annum) received by the holder of the bill at the date of maturity?

[4+4] = 8 marks

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