Question

Chris' Fish'n'Chips will issue 90 day Bank Accepted Bills (BABs) with a face value of $150,000. The acceptance fee charged by the bank is 2%. If the market rate for 90 day BABs is 10.01% how much will Chris' Fish'n'Chips receive from the issue?

A $100,000 Bond was issued at 5.16% pa.

The market is currently returning 5.11% pa.

Calculate the Coupon Payment to the nearest dollar.

Assuming a 13 year Bond, paying semi annual coupons was issued 6 years ago.

n = ?

A 6 year, $100,000 Bond was issued 2 years ago.

Semi annual coupons are being received at 6.37% pa and the market is now returning 5.05%.

Correctly identify the figure (as a percentage) that would be used in the Bond Pricing Formula that represents "i".

Round to TWO decimal places.

A 45 day Commercial Bill was traded in the secondary market 30 days after being issued.

Calculate "t".

Monster Ltd has a 180 day commercial bill facility for $150,000 by issuing 90 day bills.

CALCULATE THE NET CASH FLOW (YOU MUST SHOW + OR -) FOR Monster AT DAY 180. The rate in the market is 1.3

CORRECTLY CALCULATE YOUR ANSWER TO TWO DECIMAL PLACES IGNORING THE $ SIGN

A 90 day Commercial Bill with a Face Value of $50,000 was traded in the market 30 days after it was first issued. Current rates are:

30 days at 3.55%

60 days at 4.14%

90 days at 5.32%

What price was the bill traded at ? Calculate your answer to TWO DECIMAL PLACES ignoring the $ sign and cashflow direction.

Answer 1

You have asked multiple unrelated questions in the same post. I have addressed the first question. Please post the balance questions, separately, one by one.

Chris' Fish'n'Chips will issue 90 day Bank Accepted Bills (BABs) with a face value of $150,000. The acceptance fee charged by the bank is 2%. If the market rate for 90 day BABs is 10.01% how much will Chris' Fish'n'Chips receive from the issue?

Discount rate, r = Acceptance fees + market rate = 2% + 10.01% = 12.01%

Net proceeds from the issue = FV / (1 + r x n/365) = 150,000 / (1 + 12.01% x 90/365) = $ 145,685.71