What Would Be the Current Value of a Bank- Accepted

question 42

Multiple Choice

What would be the current value of a bank- accepted bill with a face value of $5,000,80 days until maturity when the current yield is 8.3% p.a.?

• A)$5,000
• B)$21,064.17
• C)$4,872.64
• D)$4,910.67

---

Definitions:

Mortgage Markets

The financial markets where mortgages are originated, bought, and sold, including both primary and secondary markets.

Fannie Mae

A government-sponsored enterprise established to expand the flow of mortgage money by creating a secondary market for mortgage loans.

Money Market Instrument

Short-term financial instruments that are highly liquid and considered safe, such as treasury bills and certificates of deposit.

Preferred Stock

A class of ownership in a corporation with a fixed dividend, senior to common stock but junior to bonds in claim on assets and earnings.