Syndicate
Credit Entities Commercial Papers
These are commercial papers issued by credit entities. They are also called banking commercial papers and have the same features as those belonging to companies. For example:.
Let?s imagine that you have 1?000,000 monetary units commercial papers as nominal value, with 180 days to maturity, a discount of 12.50%, and a brokers annual commission of 1.5/1000. The disbursement the buyer will make is:
Commercial papers cash
1?000,000 x 12.50 x 180 = 61,644 m.u.
100 365
1?000,000 - 61,644 = 938,356 m.u.
Commission:
1.5 x 180 x 1?000,000 740 m.u.
1,000 365
Total disbursement : 938,356 + 749 = 939,096 m.u.
Commercial papers profitability can be estimated as follows:
180 days profitability
Commercial paper - Total disbursement = 1?000,000 - 939,096 = 60,904 =
Total disbursement 939,096 939,096
= 0.06485
Annual profitability
0,06485 x 365 = 0,1315 0r 13,15%
180
If a compound interest is applied, the annual profitability would be 13,40%