00:01
Hi there, so for this problem, the question is, what is the purchase price with the given information? this is of a 50 -day t -field.
00:22
So this is the days to maturity.
00:28
So, 50 -day.
00:33
And with the majority value, maturity value.
00:48
So the maturity value is 1 ,000.
00:54
That earns an annual interest rate.
00:58
So the rate for this is also given, and that is equal to 4 .195%.
01:11
And we need to assume a 360 day year.
01:18
So we can use the following formula for the tpl discount.
01:24
So that will be that the rate is equal to the value that we're given, the maturity value, as labeled that as just simply mb.
01:39
So that will be mb minus the purchase price that we're going to label just simply as p p...