Reference no: EM133021570
Question - Geo Engin, a manufacturer of geological equipment, is often open to investing in the Promissory Notes of reputable companies for short-term periods ranging from 2 to 5 months. Currently, High Tech Inc needs an amount of $35 Million to meet its financial obligations. Managers of High Tech have decided to sign a contract with Geo Engin as the advancer of funds. However, it is difficult for managers of HighTech to calculate how much they have to pay back at the maturity date.
How much is the Face Value that High Tech has to pay back to Geo Engin under various maturity dates of 60, 90 and 120 days if Geo Engin advances exactly $35 Million?
Geo Engin is quoting the following Yields it would need to earn:
60 days 7.0%
90 days 7.5%
120 days 8.0%
A. 34,956,887; 35,677,920; 35,422,764
B. 35,402,740; 35,647,260; 35,920,548
C. 35,402,740; 37,292,807; 35,920,548
D. 34,956,887; 35,647,260; 35,920,548
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