Task 1
Corporation A issued a trade bill in the amount of CZK 10,000,000.00 due as at 1st June 2007. Corporation B purchased the bill on 3rd March 2007 at yearly discount rate 7% and on 5th April 2007 it sold the bill at yearly discount rate 6.95%. What yearly interest rate did corporation B implement by means of this transaction?
Additions for downloading:
Maplet for calculation of the number of days between two determination dates
Maplet for calculation of discounted amount of bill
Task 2
Company PEIK discounts at Komerční banka /Commercial Bank/ as at 20th April 2007 four bills with various dates of issue, various interest rates and various dates of maturity:
| Serial number |
Date of issue |
Face value (CZK) |
Interest rate (% p.a.) |
Date of maturity |
| 1. |
1st February 2007 |
30 000 |
2 |
1st August 2007 |
| 2. |
15th March 2007 |
100 000 |
3 |
15th July 2007 |
| 3. |
21st March 2007 |
40 000 |
2,5 |
15th September 2007 |
| 4. |
7th April 2007 |
110 000 |
3,2 |
1st October 2007 |
Discount rate of the bank amounts to 7% p.a., commission of the bank amounts to 5 per mille, expenses for each bill CZK 35.00.
-
Determine total discount value of four bills.
-
Determine mean date of maturity.
