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?
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 %