Sydney limited draws a promissory note with a face value of $50 000 and a maturity of 181 days. The note can be discounted for $48 090. What is the annual interest rate earned by the holder of the note (assuming that the holder of the note will keep it till maturity?) A) 4% B) 8% C) 2% D) 6%
Sydney limited draws a promissory note with a face value of $50 000 and a maturity of 181 days. The note can be discounted for $48 090. What is the annual interest rate earned by the holder of the note (assuming that the holder of the note will keep it till maturity?) A) 4% B) 8% C) 2% D) 6%
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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Transcribed Image Text:Sydney limited draws a promissory note with a face value of $50 000 and a maturity of 181
days. The note can be discounted for $48 090. What is the annual interest rate earned by the
holder of the note (assuming that the holder of the note will keep it till maturity?)
A) 4%
B) 8%
C) 2%
D) 6%
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