A Bank Accepts 90 Day Bills with a Face Value

question 35

True/False

A bank accepts 90 day bills with a face value of $20 million for a fee of 120 bps.This bill is sold to an investor at a yield of 4% p.a.The amount received by the borrower is $19 804 666.30.

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Definitions:

Retroactive Interference

When access to older memories is impaired by newer memories.

Cryptomnesia

A phenomenon where a person mistakenly believes a memory or idea is new or original when it is actually derived from a forgotten source.

Source Amnesia

A type of amnesia in which someone can remember certain information but is unable to recall where, when, or how they learned that information.

Estimate

A rough calculation or judgment of the value, number, quantity, or extent of something.