Question

1. A 270-day Treasury bill (assume a $1000 par value) is quoted as having a price...

1. A 270-day Treasury bill (assume a $1000 par value) is quoted as having a price of $978.62. What is its bond equivalent yield? Record your final numerical answers as a percent rounded to 3 decimal places.

2. A 180-day Treasury bill is quoted as having a 3.875% bond equivalent yield. What is the effective annual yield? Record your final numerical answers as a percent rounded to 3 decimal places.

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
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 U.S. Treasury Bill with 92 days to maturity is quoted at a discount yield of...
A U.S. Treasury Bill with 92 days to maturity is quoted at a discount yield of 2.37%. a) Assuming a $100,000 face value, what dollar price would you pay for this bill? b) What holding period yield will you earn? c) What is the effective annual yield? d) What is the bond equivalent yield?
suppose a 90-day treasury bill has a bank discount yield of 7 percent. Determine its bond...
suppose a 90-day treasury bill has a bank discount yield of 7 percent. Determine its bond equivalent yield and effective annual yield
(B) The “bid” and “ask” yields for a 100- day US Treasury Bill were quoted by...
(B) The “bid” and “ask” yields for a 100- day US Treasury Bill were quoted by a bond dealer as 5.91% and 5.89%, respectively. The face value of this US Treasury Bill is $100,000. Shouldn’t the “bid yield” be less than the “ask yield”, because the “bid yield” indicates how much the dealer is willing to pay and the “ask yield” is what the dealer is willing to sell the Treasury bill for? Please explain your view on this with...
A Treasury bill that settles on May 18, 2019, pays $100,000 on August 21, 2019. Assuming...
A Treasury bill that settles on May 18, 2019, pays $100,000 on August 21, 2019. Assuming a discount rate of 3.87 percent, what are the price and bond equivalent yield? Use Excel to answer this question. (Round your price answer to 2 decimal places. Enter your yield answer as a percent rounded to 3 decimal places.) Price 0 Bond equivalent yield 0 %
What is the price of a U.S. Treasury bill with 87 days to maturity quoted at...
What is the price of a U.S. Treasury bill with 87 days to maturity quoted at a discount yield of 2.15 percent? Assume a $1 million face value. (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Ch30 Q8 A three-month Treasury bill and a nine-month bill both sell at a discount of...
Ch30 Q8 A three-month Treasury bill and a nine-month bill both sell at a discount of 11%. a-1. Calculate the annual yield of the three-month Treasury bill. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Annual yield             %_________________ a-2. Calculate the annual yield of the nine-month Treasury bill. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Annual yield             %_____________- b. Which bill offers the...
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 %...
6. The price of a 90-day Treasury bill is quoted as 12.00. What continuously compounded return...
6. The price of a 90-day Treasury bill is quoted as 12.00. What continuously compounded return (on an actual/365 basis) does an investor earn on the Treasury bill for the 90-day period? Suppose that the Treasury bond futures price is 102-20. Which of the following four bonds is cheapest to deliver? Bond Price Conversion Factor 1 126-15 1.2131 2 143-25 1.3792 3 116-23 1.1149 4 145-12 1.4026
suppose you invest in two year treasury bill with a coupon of 5% and $1000 par....
suppose you invest in two year treasury bill with a coupon of 5% and $1000 par. Suppose that you buy this bond at a price of exactly $1000. you intend to hold the bond to maturity and reinvest the coupons until the bond matures . you expect to reinvest the coupons in an account that pays an APR of 2.25% with semi annual compounding . calculate EAY effective interest rate
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT