A Company Issues 90-Day Bank Bills with a Face Value

question 30

Essay

A company issues 90-day bank bills with a face value of $5 000 000.The bank acting as acceptor charges a fee of 90 basis points.The BBSW at the time of issue is 4.3 per cent.
A.A fund manager purchases the bills in the primary market.How much do they pay?
B.How much does the company receive?
C.Calculate the fee earned by the acceptor.

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