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3. (2 points) For a $10,000 91-day treasury bill, find the price necessary to have a...
What is the price of a $10,000 Treasury Bill with 89 days to maturity with a...
What is the price of a $10,000 Treasury Bill with 89 days to maturity with a quoted discount yield of 1.55%? What is the bond equivalent yield of that Treasury Bill?
Suppose that on January 2, 2018, the U.S. Treasury auctioned the following four T-Bills: 28-Day 91-Day...
Suppose that on January 2, 2018, the U.S. Treasury auctioned the following four T-Bills: 28-Day 91-Day 182-Day 270-Day Issue Date 1/2/2018 1/2/2018 1/2/2018 1/2/2018 Maturity Date 1/30/2018 4/3/2018 7/3/2018 9/29/2018 Face Value per $100 100 100 100 100 Price per $100 99.8 99.2 98.3 97.5 Determine the bank discount rate for each T-Bill using formula 10-3 given in the chapter and the DISC function. Determine the bond equivalent yield for each T-Bill using the formulas given in the chapter and...
i need #4 and 5 3. A Treasury bill has a face value of $10,000, is...
i need #4 and 5
3. A Treasury bill has a face value of $10,000, is selling for $9,800, and matures in 78 days. i. What is its discount rate? (9.231%) ii. What is the bond equivalent yield (BEY) if you purchase the security now? (9.550%) ii, Suppose that you purchase this bill and held it for 60 days and then sell it for S9,954.846154. What is the yield on your investment? (9.612%) iv. What is the effective annual yield...
A T-bill with face value $10,000 and 91 days to maturity is selling at a bank...
A T-bill with face value $10,000 and 91 days to maturity is selling at a bank discount ask yield of 3.8%. 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.) Price of the bill 9,906.17 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 3.80 %
QUESTION ONE A 91 days treasury bill with a par value of K100 has been issued...
QUESTION ONE A 91 days treasury bill with a par value of K100 has been issued at a price of K97.55. Required: (a) Calculate the bond equivalent yield of the Treasury bill. (b) If the Treasury bill above was a 182 instrument, would the bond equivalent yield be more than or less than the bond equivalent yield calculated above? A 273 Treasury bill with a par value of K100.00 has a bond equivalent yield of 12.75%, which would be achieved...
If the discount yield on a 30-day Treasury bill is 4%, what is its bond-equivalent yield...
If the discount yield on a 30-day Treasury bill is 4%, what is its bond-equivalent yield (investment rate)?
A 3-month $25,000 treasury bill with a simple annual discount rate of 0.25% was sold in...
A 3-month $25,000 treasury bill with a simple annual discount rate of 0.25% was sold in 2016. Assume 365 days in a year. (a) Find the price of the treasury bill (T-bill). (b) Find the actual interest rate paid by the Treasury. (a) The price of the T-bill was $] (Round to the nearest cent as needed.) A 6-month $20,500 treasury bill with a simple annual discount rate of 0.44% was sold in 2016. Assume 365 days in a year....
3. In March, Fiona Fox, Treasury Manager for the Global Gathering Corporation, and plans on purchasing...
3. In March, Fiona Fox, Treasury Manager for the Global Gathering Corporation, and plans on purchasing $1,000,000 of 91 day T-bills for the company’s short-term portfolio when that amount of cash comes in to the company in May. At this time, the 91 day T-bill discount rate is 1.670%, implying a price of $1,000,000 [1 –(.0167 x 91/360)] = $995,778.61. At this time, on the CME Group website, the May 2018 futures price for 90- day Eurodollar CD, the IMM...
2. A 3 -month $25,000 treasury bill with a simple annual discount rate of 0.24% was...
2. A 3 -month $25,000 treasury bill with a simple annual discount rate of 0.24% was sold in 2016. Assume 365 days in a year. (a) Find the price of the treasury bill (T-bill). (b) Find the actual interest rate paid by the Treasury. 3.Find the compound amount for the deposit and the amount of interest earned $19,000 at 3% compounded monthly for 18 years. The compound amount after 18 years is $____ 4.Find the interest rate for a $6000 deposit...
Paus in June, you are expecting to buy $10m 3-m Treasury bills in September, but is concerning that the Treasury bil...
Paus in June, you are expecting to buy $10m 3-m Treasury bills in September, but is concerning that the Treasury bill price could go up. The 91-day Treasury bill today is trading to yield 5.50 % , but is expected to decline to 4.8 % in September. As rates are will be rising, a hedge is needed. (A) If you don't hedge, what will be the opportunistic loss is September when you purchase the T-bills? (B) If you hedge by...
i need #4 and 5
3. A Treasury bill has a face value of $10,000, is selling for $9,800, and matures in 78 days. i. What is its discount rate? (9.231%) ii. What is the bond equivalent yield (BEY) if you purchase the security now? (9.550%) ii, Suppose that you purchase this bill and held it for 60 days and then sell it for S9,954.846154. What is the yield on your investment? (9.612%) iv. What is the effective annual yield...
A T-bill with face value $10,000 and 91 days to maturity is selling at a bank discount ask yield of 3.8%. 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.) Price of the bill 9,906.17 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 3.80 %
QUESTION ONE A 91 days treasury bill with a par value of K100 has been issued at a price of K97.55. Required: (a) Calculate the bond equivalent yield of the Treasury bill. (b) If the Treasury bill above was a 182 instrument, would the bond equivalent yield be more than or less than the bond equivalent yield calculated above? A 273 Treasury bill with a par value of K100.00 has a bond equivalent yield of 12.75%, which would be achieved...
A 3-month $25,000 treasury bill with a simple annual discount rate of 0.25% was sold in 2016. Assume 365 days in a year. (a) Find the price of the treasury bill (T-bill). (b) Find the actual interest rate paid by the Treasury. (a) The price of the T-bill was $] (Round to the nearest cent as needed.) A 6-month $20,500 treasury bill with a simple annual discount rate of 0.44% was sold in 2016. Assume 365 days in a year....
Paus in June, you are expecting to buy $10m 3-m Treasury bills in September, but is concerning that the Treasury bill price could go up. The 91-day Treasury bill today is trading to yield 5.50 % , but is expected to decline to 4.8 % in September. As rates are will be rising, a hedge is needed. (A) If you don't hedge, what will be the opportunistic loss is September when you purchase the T-bills? (B) If you hedge by...
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