Demonstrate That the Effective Cost of Funds for a $20

question 114

Essay

Demonstrate that the effective cost of funds for a $20 million 90-day bank bill issue in June is the forward rate established in April (when 20 June BAB futures are sold at 96.45), rather than the BBSW of 4.05% when the bills are issued in June.

---

Definitions:

Negative Thoughts

Mental processes or statements that reflect pessimism, criticism, or defeat, often affecting one's outlook and mental health.

Alcohol-Related Diseases

Health conditions directly influenced or caused by the excessive consumption of alcohol, such as liver cirrhosis, alcohol use disorder, and certain types of cancer.

OTC Medication Abuse

The misuse of over-the-counter drugs in a manner not intended by the manufacturing company or doctor’s prescription, often leading to health issues.

Trouble Sleeping

A difficulty in falling or staying asleep, which can affect overall health and quality of life.