Explore BrainMass

Explore BrainMass

    MZC Ltd Case study: Annualized cost of funds calculation

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    MZC Ltd draws $2,000,000 in 180-day BABs at the current market rate of 7.0% p.a. What proceeds will the firm receive from discounting the bill if the bank charges an acceptance fee of 1.5%? What is the firm's annualized cost of funds taking the acceptance fee into account? With all calculations.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:00 pm ad1c9bdddf
    https://brainmass.com/business/finance/mzc-ltd-case-study-annualized-cost-funds-calculation-23315
    $2.49

    ADVERTISEMENT