Question

A Treasury discount yield on a three-month (90 days) T-bills was 2.36%.

What is the price per $100 of par value given this yield?

Using your answer for the price, what is the "corrected" annual yield?

Answer #1

ANSWER DOWN BELOW. FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

a.

Price of T-Bill = maturity value- [maturity value×discount rate×(number of days to maturity/360)]

=100-[100×2.36%×(90/360)]

Price of T-Bill = $99.41 (rounded off)

Price of T-Bill as a percentage of Face Value = 99.41%

b.

Bond Equivalent Yield or corrected Annual yield = [(Maturity Value - Purchase Price)/Purchase Price]×(365/number of days left to maturity)]

corrected Annual yield = [(100 - 99.41)/99.41]×(365/90)

corrected Annual yield = 2.407%

Suppose 6-month Treasury bills are trading at a YTM of 2%,
12-month T-bills are trading at a YTM of 2%. If 18-month Treasury
notes with a coupon rate of 7% are trading at par ($100), then what
is the 18-month spot rate?
Assume semi-annual compounding.
Round your answer to 4 decimal places. For example if your
answer is 3.205%, then please write down 0.0321.

1 Treasury bills sell at a discount from par. If 10,000 par
value for a 13 week security sells for $ 9,997.80. What is the
discount yield?
2 for the above T-bill , what is the bond equivalent yield?-
Just answer this one

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...

At auction, 5-month T-bills were sold at a discount of 3.705%.
What was the simple annual yield rate?

The yield on 12-month treasury bills is 1.7% and the yield on
2-year treasury notes is 2.5%.
Attempt 1/5 for 10 pts.
Part 1
What is the implied 1-year forward rate one year from now? Enter
your answer as a decimal, not a percentage.

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?

Assume that 3-month Treasury bills totaling $23 billion were
sold in $10,000 denominations at a discount rate of 5.200%. In
addition, the Treasury Department sold 6-month bills totaling $21
billion at a discount rate of 5.145%. a. What is the discount
amount for 3-month bills? (Do not round intermediate calculations.
Round your final answer to the nearest cent.) Discount amount for
3-month bills $ b. What is the discount amount for 6-month bills?
(Do not round intermediate calculations. Round your...

Historically, Treasury bills offered higher rates. On January
2, 2007, the discount rates were substantially higher than in July
2016. For the following Treasury bill bought in 2007, find
(a) the price of the Treasury bill (T-bill),
(b) the actual interest rate paid by the Treasury.
Assume 365 days in a year. One-month $20,750 T-bill with
simple annual discount rate of 5.67%

Assume that 3-month Treasury bills totaling $11 billion were
sold in $10,000 denominations at a discount rate of 3.250%. In
addition, the Treasury Department sold 6-month bills totaling $9
billion at a discount rate of 3.195%.
a. What is the discount amount for 3-month
bills? (Do not round intermediate calculations. Round your
final answer to the nearest cent.)
b. What is the discount amount for 6-month
bills? (Do not round intermediate calculations. Round your
final answer to the nearest cent.)...

Treasury bill purchased in December 2016 has 140 days until
maturity and a bank discount yield of 1.87 percent. Assume a $100
face value.
a. What is the price of the bill as a
percentage of face value? (Do not round intermediate
calculations. Round your answer to 3 decimal places.)
b. What is the bond equivalent yield?
(Do not round intermediate calculations. Enter your answer
as a percent rounded to 3 decimal places.)

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 48 seconds ago

asked 2 minutes ago

asked 16 minutes ago

asked 16 minutes ago

asked 16 minutes ago

asked 21 minutes ago

asked 23 minutes ago

asked 23 minutes ago

asked 28 minutes ago

asked 35 minutes ago

asked 43 minutes ago

asked 43 minutes ago