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Reserve Bank Debenture

  1. Sep 11, 2007 #1
    Nominal Value: R3 000 000
    Issue Date: 1 January 2006
    Expiry Date: 30 June 2006
    Interest Rate: 9,25%

    On 25 February this instrument trades at an interest of 8,50%. The number of days from 1 Jan 2006 to 25 February is 55 days, from 25 February to 30 June is 125 days and from 1 Jan 2006 to 30 June 2006 there are 180 days. What is the consideration in the secondary market?
    PLEASE HELP!!!!!!!
     
  2. jcsd
  3. Sep 11, 2007 #2

    HallsofIvy

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    This is NOT a mathematics problem! Once you know the definitions of all those terms, and the basic formulas, which are really Economics, the only math involved is arithmetic.
     
  4. Sep 11, 2007 #3
    Thanks!!!!!!!!
     
  5. Sep 11, 2007 #4

    CRGreathouse

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    Don't foist that onto economists, who do use real math (though not as much as mathematicians, of course). This is a problem of finance or accountancy, which use no more than basic arithmetic.
     
  6. Sep 11, 2007 #5

    HallsofIvy

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    Sorry, I didn't mean to offend economist!

    On the other hand, my brother is an accountant and makes four times as much as I do.
     
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