Calculate the after-tax interest income

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Problem 1: You are working as a treasurer for a Toronto-based long-term healthcare company. Your company has $100,000,000 of excess cash and you notice that, on June 29, the 3-month overnight financing rate is 0.12%. If you consider depositing your company's excess cash ($100,000,000) for 28 consecutive days in this overnight rate, calculate the after-tax interest income assuming that the tax rate on interest income is 40%. Also, assume that there is no transaction cost and there are 30 days in one month. (Do not use the $ sign. If your answer is $123,456.78, enter 123456.78)

Reference no: EM132939371

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