# Ted has a cash surplus of $104,186 in August and will invest it in Treasury Bills with a nominal value

## Question:

Ted has a cash surplus of $104,186 in August and will invest it in Treasury Bills with a nominal value of $100 000, issued for a period of 91 days at a discount rate of 10.20%.

Ted has a cash surplus of $94,186 in September and will invest it in Banker Acceptance with a nominal value of $ 200,000 that has 80 days to maturity and the discount rate is 17.25% per annum.

Ted has a cash surplus of $113,356 in October and will invest it in Commercial Paper for $280 000 with a face value of $300 000, a maturity of 91 days with a brokerage fee and other charges of 2%

Q1. Calculate the consideration values of the Treasury Bill and Banker Acceptance that Ted will invest in.

Q2. Determine a yield to maturity of the Treasury Bill, Banker Acceptance, and Commercial Paper that Ted will buy and keep until maturity.

NB: Use 365 days.

**Related Book For**

## Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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