Q.4120 Bright Bank lends $10,000 of cash at a spread of 0.26% for 150 days. Calculate the Bank’s lending value. | Financial Risk Manager Part 2 Quiz - LeetQuiz
Financial Risk Manager Part 2
Explanation:
The value of lending $10,000 of cash at a spread of 0.26% for 150 days is calculated as: $10,000 \times \frac{150 \times 0.26%}{360} = `10.83‘
i.e., $10.83 per $10,000 market value of the bond.
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Q.4120 Bright Bank lends $10,000 of cash at a spread of 0.26% for 150 days. Calculate the Bank’s lending value.