(i) (ii) (iii) Ecobank holds ¢450million T-Bill but is in short of cash. It needs cash to meet the requirement of a cust

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I Ii Iii Ecobank Holds 450million T Bill But Is In Short Of Cash It Needs Cash To Meet The Requirement Of A Cust 1 (84.08 KiB) Viewed 83 times

(i) (ii) (iii) Ecobank holds ¢450million T-Bill but is in short of cash. It needs cash to meet the requirement of a customer who has come to withdraw ¢400million. You have been asked to approach Barclays Bank to sell the T-Bill for ¢395.5million on Monday morning with agreement to repurchase the bill on Friday evening. (a) How much in cedis does Ecobank lose in this transaction (b) What is the Repo Rate on this transaction? You have just been offered a commercial paper with a face value of $45,000,000 and a purchase price $40,000,000 which matures in 182 days. What is the discount yield on this commercial paper? Ecobank plans to issue a 2-year bond with a face value of $500,000,000 bearing 20% coupon rate. The market interest rate is 25%. The coupons are paid every six months. You are to calculate the price of this bond.