Question

Jane purchased a 180-day T-bill with a face value of $75,000 on the date of issue...

Jane purchased a 180-day T-bill with a face value of $75,000 on the date of issue when the market return was 3.5%. Jane then sold the T-bill 30 days later when the market rate was 3.0%.
a) What price did Jane pay for the T-bill?
b) What was the profit or loss that Jane realized from the sale of the T-bill 100 days later?
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
Ali purchased a 91-day T-Bill that has a face value of $1000 and an interest rate...
Ali purchased a 91-day T-Bill that has a face value of $1000 and an interest rate of 4.50% p.a. a. Calculate the purchase price of the T-Bill. Round to the nearest cent b. In 31 days, he needed the money and therefore, sold the T-bill to another investor. The rate for this investment in the market was 6.50% at the time of the sale. Calculate his selling price.
15. Ninety days ago, you purchased a 180-day Treasury bill with a face value of $500,000....
15. Ninety days ago, you purchased a 180-day Treasury bill with a face value of $500,000. At the time of your purchase, the yield to maturity on the bill was 6.0% p.a. If the current yield to maturity on the bill is 4.0% p.a. the price of the bill today is closest to: a) $485,631. b) $490,328. c) $492,711. d) $495,117.
On 31 August 2018, SisterCo issued a 180-day bank bill with a face value of $100,000...
On 31 August 2018, SisterCo issued a 180-day bank bill with a face value of $100,000 at a yield of 5.5% p.a. The bill was accepted and discounted by BankOne on that date. BankOne held the bill for 97 days and then sold it to BankTwo at a yield of 5.9% p.a. How much did BankOne receive when it sold the bill to BankTwo? Round your answer the whole dollar A. $95,897 B. $98,989 C. $97,676 D. $98,676 E. $96,783...
You buy a 180-day bank-accepted bill (BAB)with a face value of $100,000 at the yield of...
You buy a 180-day bank-accepted bill (BAB)with a face value of $100,000 at the yield of 6.50 per cent per annum. a)What price would you pay for the bill now? After 32 days,you sell the bank bill for $95,500.00. b)What is your holding period yield? Part 2 Examine two reasons why an investor may prefer bonds rather than shares when deciding to invest.
Polycorp wishes to issue a 90 day bank bill with a face value of $2,000,000. If...
Polycorp wishes to issue a 90 day bank bill with a face value of $2,000,000. If the current 90 day rate is 8% how much will Polycorp issue the bill for. Calculate to the nearest dollar. 1961311 2000000/(0.08*90/365)Polycorp wishes to issue a 90 day bank bill with a face value of $2,000,000. If the current 90 day rate is 8% how much will Polycorp issue the bill for. Calculate to the nearest dollar. 1961311 2000000/(0.08*90/365) I did the calculation multiple...
As part of your financial plan for retirement, you purchased a 270-day $25,000 commercial paper on...
As part of your financial plan for retirement, you purchased a 270-day $25,000 commercial paper on its date of issue, July 14, when market yields were 2.94%. 234 days later, you sold the note when market yields were 2.76%. What rate of return did you realize on your investment?
As part of your financial plan for retirement, you purchased a 270-day $25,000 commercial paper on...
As part of your financial plan for retirement, you purchased a 270-day $25,000 commercial paper on its date of issue, July 14, when market yields were 2.94%. 234 days later, you sold the note when market yields were 2.76%. What rate of return did you realize on your investment?
As part of your financial plan for retirement, you purchased a 270-day $25,000 commercial paper on...
As part of your financial plan for retirement, you purchased a 270-day $25,000 commercial paper on its date of issue, July 14, when market yields were 2.94%. 234 days later, you sold the note when market yields were 2.76%. What rate of return did you realize on your investment?
Chris' Fish'n'Chips will issue 90 day Bank Accepted Bills (BABs) with a face value of $150,000....
Chris' Fish'n'Chips will issue 90 day Bank Accepted Bills (BABs) with a face value of $150,000. The acceptance fee charged by the bank is 2%. If the market rate for 90 day BABs is 10.01% how much will Chris' Fish'n'Chips receive from the issue? A $100,000 Bond was issued at 5.16% pa. The market is currently returning 5.11% pa. Calculate the Coupon Payment to the nearest dollar. Assuming a 13 year Bond, paying semi annual coupons was issued 6 years...
As a part of your financial plan for retirement, you purchased a 270-day $25000 commercial paper...
As a part of your financial plan for retirement, you purchased a 270-day $25000 commercial paper on its due date of issue, july14, when market yields were 2.94%. 234 days later, you sold the note when market yields were 2.76%. what rate of return did you realize on your investment? Show it using a timeline
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT