Answer to Question #142208 in Finance for rg

Question #142208

You have just purchased a newly issued 90-day bank-accepted bill with a face value of $100,000. Given you paid exactly $99,000 for the bill, what was your annual nominal required rate of return on debt?



1
Expert's answer
2020-11-09T06:54:49-0500



Face value= $100,000

Cost of the bill= $99,000


= 0.01= 1%


convert to annual nominal rate of return = = 4%


Therefore the annual nominal rate of return = 4 %


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