Question

A T-bill that is 240 days from maturity is selling for $95,940. The T-bill has a face value of $100,000. a. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill. b. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill if it matures in 315 days.

Calculate the discount yield, bond equivalent yield, and EAR on the T-bill. (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))

A) Discount Yield:

B) Bond Equivalent

C) EAR:

Answer #1

You can purchase a T-bill that is 70 days from maturity for
$17,465. The T-bill has a face value of $17,500.
a.
Calculate the T-bill’s quoted yield.
(Use 360 days in a
year. Do not round intermediate
calculations. Round your answer to 3 decimal places.
(e.g., 32.161))
T-bill’s quoted yield
%
b.
Calculate the T-bill’s bond equivalent yield.
(Use 365 days in a
year. Do not round intermediate
calculations. Round your answer to 3 decimal places.
(e.g., 32.161))
T-bill’s bond...

ou can purchase a T-bill that is 95 days from maturity for
$9,965. The T-bill has a face value of $10,000. a. Calculate the
T-bill’s quoted yield. (Use 360 days in a year. Do not round
intermediate calculations. Round your answer to 3 decimal places.
(e.g., 32.161)) T-bill’s quoted yield % b. Calculate the T-bill’s
bond equivalent yield. (Use 365 days in a year. Do not round
intermediate calculations. Round your answer to 3 decimal places.
(e.g., 32.161)) T-bill’s bond...

You can purchase a T-bill that is 68 days from maturity for
$17,965. The T-bill has a face value of $18,000.
a. Calculate the T-bill’s quoted yield.
(Use 360 days in a year. Do not round intermediate
calculations. Round your answer to 3 decimal places. (e.g.,
32.161))
b. Calculate the T-bill’s bond equivalent yield.
(Use 365 days in a year. Do not round intermediate
calculations. Round your answer to 3 decimal places. (e.g.,
32.161))
c. Calculate the T-bill’s EAR. (Use...

The current T-Bill that is 225 days from maturity is selling for
$98,850. The T. Bill has a face value of $100,000
1. Calculate the Discount Yield on the T-Bill.
2. Calculate the Bond Equivalent Yield on the T-Bill
3. Calculate the EAR on the T-Bill
In the above problem all else remaining the same, what would be
the Bond Equivalent Yield on the T-Bill if the maturity is 300
days?

A T-bill with face value $10,000 and 95 days to maturity is
selling at a bank discount ask yield of 4.2%.
a. What is the price of the bill? (Use 360 days a year. Do not
round intermediate calculations. Round your answer to 2 decimal
places.)
b. What is its bond equivalent yield? (Use 365 days a year. Do
not round intermediate calculations. Round your answer to 2 decimal
places.) Bond equivalent yield %

#5
A T-bill with face value $10,000 and 88 days to maturity is
selling at a bank discount ask yield of 3.5%.
a. What is the price of the bill? (Use 360
days a year. Do not round intermediate calculations. Round your
answer to 2 decimal places.)
b. What is its bond equivalent yield? (Use
365 days a year. Do not round intermediate calculations. Round your
answer to 2 decimal places.)

1-
What is the discount yield, bond equivalent yield, and effective
annual return on a $1 million T-bill that currently sells at 96.375
percent of its face value and is 75 days from maturity?
(Use 360 days for discount yield and 365 days in a year for
bond equivalent yield and effective annual return. Do not round
intermediate calculations. Round your answers to 3 decimal
places. (e.g., 32.161))
Discount
yield
%
Bond
equivalent yield
%
Effective annual return
%...

What is the discount yield, bond equivalent yield, and effective
annual return on a $1 million T-bill that currently sells at 95.375
percent of its face value and is 70 days from maturity?
(Use 360 days for discount yield and 365 days in a year for
bond equivalent yield and effective annual return. Do not round
intermediate calculations. Round your answers to 3 decimal
places. (e.g., 32.161))

10A)
An investor buys a T-bill at a bank discount quote of 6.30 with
120 days to maturity for 9,790.00. The bill has a face value of
$10,000. The investor's bond equivalent yield on this investment is
_____.
6.44%
6.52%
7.02%
6.35%
10B) A T-bill with face value $10,000 and 90 days to maturity is
selling at a bank discount ask yield of 3.7%.
a. What is the price of the bill?
b. What is its bond equivalent yield

A U.S. Treasury bill with 64 days to maturity is quoted at a
discount yield of 1.75 percent. Assume a $1 million face value.
What is the bond equivalent yield? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 3 decimal places.)
Bond equivalent yield
%

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