Question regarding NP & NR

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    Topic
  • #1584761
    jessanqi
    Participant

    hi quick question about NP & NR.

    If the Note price is $200,000 and is non bearing interest, then it means the maturity value is $200,000 and we can discount the present value of the note.

    If the note price is $200,000 with 5% interest one year, then the cash we receive or pay today is $200,000, and the maturity value should be calculate with the 5%. 200,000*0.05.

    Is this correct???

    Thank you!!!

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