A Company Issues a 90-Day Bill with a Face Value

question 103

Multiple Choice

A company issues a 90-day bill with a face value of $100 000,yielding 7.65% per annum.What amount would the company raise on the issue?

• A) $84 130.46
• B) $92 350.21
• C) $98 123.39
• D) $98 148.62

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Definitions:

False Entries

Incorrect or misleading information entered into a record or document, particularly with the intent to deceive.

Defalcation

Misappropriation of funds or embezzlement, typically by a person trusted with the management of those funds.

Ponzi Scheme

A deceptive investment scheme that offers high returns with minimal risk to investors, but instead of earning from genuine business operations, it pays profits to earlier investors using the funds from new participants.

Defalcation

The misappropriation of funds or property entrusted to one's care, often involving fraud or embezzlement.