Question 64
BankingA bill holder wishing to dispose of his bills before maturity would be paid
- A.the discounted value of the bill
- B.the present value of the bills
- C.the premium on the bills only
- D.the accumulated interest on the bills
- E.total face value of the bills with the premium
Show the answer and explanation
Answer: A (the discounted value of the bill)
Explanation
Selling a bill before it is due means discounting it: the buyer pays the face value less a discount.