Interest receivable after 180 days (at maturity):
2,600*0.08*180/360=$104
Total receivable after 180 days:
2,600+104=$2,704
Discount at 11% on July 22:
2,704*0.11*132/360=$109
where 132 - the number of days remaining until maturity at the time of sale of the note:
180 – 48 (26 days in June and 22 in July) = 132
Therefore the discount fee will be more than interest receivable at maturity, the proceeds at the moment of selling will be less than face price of the note:
2,704-109=$2,595
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