If a Company Sells (Discounts)a Bank Bill with a Face

question 23

Multiple Choice

If a company sells (discounts) a bank bill with a face value of $500 000,a term to maturity of 120 days,and a yield of 8.45% per annum,how much will the company raise on the issue? (Ignore transaction fees.)

• A) $391 295.03
• B) $445 312.02
• C) $486 485.05
• D) $486 302.48

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Definitions:

Conception

The process of fertilization where an egg and sperm combine to form a zygote, marking the beginning of pregnancy.

Miscarriages

The spontaneous loss of a pregnancy before the fetus can survive outside the womb, typically before 20 weeks of gestation.

Amniocentesis

A prenatal test that involves inserting a needle into the uterus and withdrawing amniotic fluid containing fetal cells that can be analyzed for genetic disorders.

Amniotic Fluid

The protective liquid contained within the amniotic sac that surrounds and cushions the fetus during pregnancy.