Level I CFA CF: Working Capital Management-Lecture 2

[@IFT-CFA]

Want to join IFT STUDY GROUP and the LIVE CLASSES? Visit: ift.world/live/

[@rocco6574]

Where can i find “exhibit 9 and example 3 “???

[@andresfernandez2483]

Why is the discount 1and not 4 in yield on short-term investment

[@IFT-CFA]

D = [(F - P)/F] * (360 / t) 0.04 = [(100 - p)/100] X (360 / 90) 0.04 = [(100 - p)/100] X (4) 0.04 * 100 = (100 - P) X 4 4 / 4 = 100 - p 100 - P = 1 P = 99 Discount in $ terms is 1, i.e. F - P = 100 - 99 = 1. IFT support team

[@crazyimaginations6768]

Please clarify why price should not be (.96*100,000) as discount rate is the percentage discount from face value

[@manavduseja6328]

@@crazyimaginations6768 Maybe because 4% is the annual rate and here the maturity is after 90days (3 months).