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.

Answer rating: 100% (QA)

Q1 Calculate the consideration values of the Treasury Bill and Banker Acceptance that Ted will invest in Treasury Bill The nominal value of the Treasu... View the full answer