Calculate the rate of return, Corporate Finance

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Question:

A. Explain in details two securities quoted at par and two securities quoted on a discount.

B. Calculate the return on a deposit of £ 1,000,000 bearing an annual interest rate of 6% and a maturity of 91 days.

C. Calculate the rate of return for a £50,000 91-day CD with fixed interest rate of 7% p.a. purchased in the market for £50,500 with 61 days remaining to maturity.

D. Calculate the value of a £50,000 Treasury bill due in 40 days' time with a rate of interest on comparable securities equal to 4% p.a.


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