Corporate FInace Assignment/ Professional Essay Writers
May 16th, 2020
1. Josh wants to raise funds by issuing eighty 180-day bank bills, each with a face value of $10 000. The current yield on such bank bills is 5.4% p.a. Josh must pay $25000 of fees and charges associated with this financing activity.
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(i) Calculate the real cost of borrowing if fees and charges are paid on the date of the issue.
Express the cost as a rate of simple interest, as a percentage, rounded to 2 decimal places. Include a neatly drawn cash flow diagram that summarises Josh’s transaction.
(ii) Calculate the real cost of borrowing if fees and charges are paid on the maturity date. Express the cost a rate simple interest, as a percentage, rounded to 2 decimal places. Get Finance Help Today