jim8z3

its not that difficult trust me
look keep the point in mind that
ST is per period cost of borrowing devided by net proceeds

Bank loan for 2 months

Net expense= Interest for 2 months + any commitment fee for two months
Net proceeds= Loan amount (as you will be awarded full amount)

Banker's acceptence

Expense= discount for two months
Net proceeds= Amount-discount (what you get initially)

commercial notes

expense: (discount+dealer's commision+backup commision) for two months
Net proceeds= Amount-discount (what you get initially)

its not that difficult i guess

and yes
do remember Inverse floater's return
Payoff=L-R(rate) (correct me if i am wrong)