What would be the current value of a bank- accepted bill with a face value of $5,000,180 days until maturity when the current yield is 5.3%p.a.?
A)$4956.45
B)$4872.64
C)$5000.00
D)$9628.57

Question

Quizplus · Accepted Answer

The formula for the present value of a bank-accepted bill is:

PV = FV / (1 + r * t)

where PV is the present value, FV is the face value, r is the yield, and t is the time until maturity in years.

Plugging in the values given:

PV = 5,000,000 / (1 + 0.053 * 180/360)
PV = $4,872.64

Therefore, the current value of the bank-accepted bill would be $4,872.64, which corresponds to answer choice B.

What Would Be the Current Value of a Bank- Accepted