FOR QUESTIONS 22, REFER TO THE FOLLOWING

INFORMATION:

The forecasts of Madiba Ltd's cash flow indicate that there will

be a cash deficit of R900,100 in June 2025. In financing this shortage, the

company will issue a 90-day banker’s acceptance bill, which its bank will

guarantee by accepting it, and the bill will then be discounted in the market

with the relevant discount rate. The company will receive R968 000 in exchange

for the bill, which will require that the company pay the nominal amount of R1

000 000 within 90 days’ time.

QUESTION 22

The cost of the bankers’ acceptance for the company (which is a

yield to the bank) is ….

a.    6,34%

b.    7.73%

c.     8.10%

d.    9.60%