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$5,000.00. 118 Round to the nearest cent p.a. al llas a lace val a. If she holds the note for the full 90 days, calculate the maturity value of the note b. If the note is discounted 42 days from maturity at a rate of 6.20% p.a., calculate

$5,000.00. 118 Round to the nearest cent p.a. al llas a lace val a. If she holds the note for the full 90 days, calculate the maturity value of the note b. If the note is discounted 42 days from maturity at a rate of 6.20% p.a., calculate

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Mark purchased a 90-day interest-bearing note at 4.80% p.a. that has a face value of $5,000.00. a. If she holds the note for the full 90 days, calculate the maturity value of the note. Round to the nearest cent b. If the note is discounted 42 days from maturity at a rate of 6.20% p.a., calculate her proceeds. Round to the nearest cent
Transcribed Image Text:Mark purchased a 90-day interest-bearing note at 4.80% p.a. that has a face value of $5,000.00. a. If she holds the note for the full 90 days, calculate the maturity value of the note. Round to the nearest cent b. If the note is discounted 42 days from maturity at a rate of 6.20% p.a., calculate her proceeds. Round to the nearest cent
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