Calculate the Price of a 90 Day NCD with a Face

question 20

Essay

Calculate the price of a 90 day NCD with a face value of $1 million and its price 30 days later, assuming that it was traded at 6% p.a.in both cases.How much interest was accumulated?

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Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced.

Volume of Business

The total amount of trade or transactions conducted by a company over a specified period, often measured in sales or units sold.

Attractive Location

pertains to a site or place with qualities that are appealing to businesses, investors, or residents, often due to factors like economic opportunities, natural beauty, or favorable conditions.

Composite Score

An overall score derived from combining several individual scores, often used in assessments or evaluations.