A Company Invests Its Surplus Funds by Buying a Commercial

question 3

Multiple Choice

A company invests its surplus funds by buying a commercial bill with a face value of $100 000,at a current yield to maturity of 7.35% per annum and 120 days to maturity.After 45 days,the bill is sold at a yield of 6.84% per annum.What rate of return did the company earn on the bill?

• A) 4.85% per annum
• B) 8.01% per annum
• C) 8.09% per annum
• D) 8.90% per annum

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Definitions:

Operational Goals

Short-term targets that are specific, measurable, and designed to guide everyday operations of an organization.

Implementation Goals

Specific objectives set during the planning phase of a project to guide the successful execution of strategies or initiatives.

Performance Goals

Specific targets or objectives set to measure and achieve desired outputs and outcomes from an individual's work.

Expectancy Theory

A theory of motivation that posits that individuals are motivated to act in a certain way based on their expectations that the act will be followed by a given outcome and the attractiveness of that outcome.