a what are the main characteristics of money market instruments b who
a) What are the main characteristics of money market instruments? b) Who are traditionally expected to be the main issuers and holders of money market instruments? How has this changed in recent times? (5 marks) c) The rate of discount is given as d = (R-P)/R.n Where R is redemption value, P is initial price and n is time to redemption If the current rate of discount on treasury bills is quoted at 3 per cent Calculate the price of newly issued 13 week treasury bill, redemption value £500,000 If interest rates stay the same, what will happen to the price as the instrument approaches maturity? (5 marks) What would happen to the price if interest rates rose? Demonstrate by calculating the price were interest rates 4% (5 marks)
*The amount will be in form of wallet points that you can redeem to pay upto 10% of the price for any assignment. **Use of solution provided by us for unfair practice like cheating will result in action from our end which may include permanent termination of the defaulter’s account.Disclaimer:The website contains certain images which are not owned by the company/ website. Such images are used for indicative purposes only and is a third-party content. All credits go to its rightful owner including its copyright owner. It is also clarified that the use of any photograph on the website including the use of any photograph of any educational institute/ university is not intended to suggest any association, relationship, or sponsorship whatsoever between the company and the said educational institute/ university. Any such use is for representative purposes only and all intellectual property rights belong to the respective owners.