Question

ou can purchase a T-bill that is 95 days from maturity for $9,965. The T-bill has...

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 equivalent yield % c. Calculate the T-bill’s EAR. (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 EAR %

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You can purchase a T-bill that is 70 days from maturity for $17,465. The T-bill has...
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...
You can purchase a T-bill that is 68 days from maturity for $17,965. The T-bill has...
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...
A T-bill that is 240 days from maturity is selling for $95,940. The T-bill has a...
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...
A T-bill with face value $10,000 and 95 days to maturity is selling at a bank...
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...
#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...
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 %...
A U.S. Treasury bill with 64 days to maturity is quoted at a discount yield of...
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 %
A bank has issued a six-month, $1.0 million negotiable CD with a 0.53 percent quoted annual...
A bank has issued a six-month, $1.0 million negotiable CD with a 0.53 percent quoted annual interest rate (iCD, sp). a. Calculate the bond equivalent yield and the EAR on the CD. b. How much will the negotiable CD holder receive at maturity? c. Immediately after the CD is issued, the secondary market price on the $1 million CD falls to $998,900. Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $1.0 million...
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million...
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))
The current T-Bill that is 225 days from maturity is selling for $98,850. The T. Bill...
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?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT