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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Definitions:

Partisanship

Strong, often blind allegiance to a particular political party or cause, frequently leading to political bias and a lack of impartiality.

Media Effect

The influence that media and its various forms have on people's attitudes, behaviors, and perceptions.

Stoking Fear

The practice of deliberately arousing public fear or alarm, often used as a tactic in politics or media.

Manipulate

To skillfully handle, control, or influence something or someone, often in a way that is cunning or deceitful.