A 90-Day Bank Bill with a Face Value of $10

question 18

Multiple Choice

A 90-day bank bill with a face value of $10 000 and a current price of $9818.43 is trading at a yield of:

• A)0.46%
• B)1.85%
• C)7.36%
• D)7.50%

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Definitions:

Incidental Beneficiary

A party who indirectly benefits from a contract but has no legal right to enforce the agreement made between other parties.

Donee Beneficiary

A third party that benefits from a contract between two other parties, to whom the promisor's performance is a gift.

Promisee

The individual or entity to whom a promise is made and who stands to benefit from the fulfillment of that promise.

Creditor Beneficiary

An individual or entity that benefits from a contract made between two other parties because of a debt owed to them.