Hey, has anyone got the question about the effective annual rate in section A?
Question:
A company wants to invest the surplus funds. The nominal value of the loan note/ bond is $10000 and the current market value is $9938. The maturity date will be 45 days later. Assume 360 days per year.
Options given are 8.05%, 4.99%… (I could not remember the remaining two options given)
I have no idea about this question. Anyone could guide me on this?
