Question: question one a_ Malaysian importer issued RM 1,000,000 BA on 31 January 2019 and will be matured on 28 April 2019. The BA is accepted

question one

a_ Malaysian importer issued RM 1,000,000 BA on 31 January 2019 and will be matured on 28 April 2019. The BA is accepted by the Royal bank at 6.0% p.a. What is the price that the Bank Royal paid the Malaysian importer for this BA?

b- Determine how much redemption proceeds received by Royal Bank if it holds BA until 28 April 2019?

c-However, the Royal Bank decides to sells the BA to the Lloyd Bank at 5.73% on 3 February 2019. Draw timelines to show details of this transaction. Compute the selling price of this BA and profit generated by the Royal Bank for selling the BA to Lloyd Bank.

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