Q1: (A)- An investor pays $9550 for a 181-day T-bill.it is worth $10,000 at maturity. What...
Q1:
(A)- An investor pays $9550 for a 181-day T-bill.it is worth $10,000 at maturity.
What is its Annualized yield?
(B) If investor sells the T-Bill 31 days after purchase and receives $9660. What is Bill Annualized yield?
Explain the Answer with formula please? Thank you
Homework Answers
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Q1:
(A)- An investor pays $9550 for a 181-day T-bill.it is worth
$10,000 at maturity.
What...
4. (a) An investor pays SAR 9550 for a 181-day SAMA-bill. It is worth SAR10000 at...
4. (a) An investor pays SAR 9550 for a 181-day SAMA-bill. It is worth SAR10000 at maturity. What is its annualized yield? If investor sells the SAMA Bill 31 days after purchase and receives 9660, what is bills annualized yield? (3+3 Mark)
Chapter 11 Questions If you pay $990 for a 28-day T-bill. It is worth $1,000 at maturity. What is the annualized in...
Chapter 11 Questions If you pay $990 for a 28-day T-bill. It is worth $1,000 at maturity. What is the annualized investment yield? Can non-banks participate in the fed funds market. How about repurchase agreements? Commercial paper is issued by what type of entity to borrow money and what is the maximum maturity? The price of a 182-day commercial paper is $8,000. If the annualized investment rate is 4.093%, what is the face value at maturity.
An investor buys a T-bill with 180 days to maturity and $250,000 par value for $242,000....
An investor buys a T-bill with 180 days to maturity and $250,000 par value for $242,000. He plans to sell it after 60 days, and forecasts a selling price of $247,000 at that time. What is the annualized yield based on this expectation? 1) about 10.1 percent 2) about 12.6 percent 3) about 11.4 percent 4) about 13.5 percent 5) about 14.3 percent
If a $10,000 par T-bill has a 4.25% discount quote and a 180-day maturity, what is...
If a $10,000 par T-bill has a 4.25% discount quote and a 180-day maturity, what is the price of the T-bill to the nearest dollar? Please show equations/work
Suppose an investor sold a T-Bill with 45 days to maturity at a discount basis of...
Suppose an investor sold a T-Bill with 45 days to maturity at a discount basis of 3.73%. He had purchased it with 90 days to maturity and earned a holding period return of 4.24%. What is the BDY of the purchase price?
As an investor, you decided to purchase a-90 day Bank Bill that has a face value...
As an investor, you decided to purchase a-90 day Bank Bill that has a face value of $100,000. When purchased, the bill had 68 days to maturity and was yielding 8.25%. After holding the bill for 10 days, interest rates increased to 9.00% and you sold the bill. What dollar amount of interest did you earn? -$ 11.25 $ 25.78 $ 87.65 $103.75 $109.89
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 %
An investor purchases one municipal bond and one corporate bond that pay rates of return of...
An investor purchases one municipal bond and one corporate bond that pay rates of return of 7% and 8.5%, respectively. If the investor is in the 20% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____. An investor buys a T-bill at a bank discount quote of 5.40 with 90 days to maturity. The investor's actual annual rate of return on this investment is _____. What is the tax exempt equivalent yield...
A T-bill with face value $10,000 and 79 days to maturity is selling at a bank...
A T-bill with face value $10,000 and 79 days to maturity is selling at a bank discount ask yield of 2.6%. 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.) Answer is complete but not entirely correct. Price of the $ 4,294.45 bill b. What is its bond equivalent yield? (Use 365 days a year. Do not round intermediate calculations. Round your answer to...
4. You can purchase a T-bill that is 90 days from maturity for $9,900. The T-bill...
4. You can purchase a T-bill that is 90 days from maturity for $9,900. The T-bill has a face value of $10,000. Calculate the T-bill's EAR. A) 4.00 percent. B) 4.16 percent. C)4.10 percent. D) 4.07 percent. E) 4.21 percent 5. A $5 million jumbo CD is paying a quoted 4.25% interest rate on 120-day maturity CDs. How much money could you withdraw at maturity if you invest in the CD? A) $5,000,000 B) $5,069,863 C) $4,929,167 D) $5,212,500 E)...
4. (a) An investor pays SAR 9550 for a 181-day SAMA-bill. It is worth SAR10000 at maturity. What is its annualized yield? If investor sells the SAMA Bill 31 days after purchase and receives 9660, what is bills annualized yield? (3+3 Mark)
Chapter 11 Questions If you pay $990 for a 28-day T-bill. It is worth $1,000 at maturity. What is the annualized investment yield? Can non-banks participate in the fed funds market. How about repurchase agreements? Commercial paper is issued by what type of entity to borrow money and what is the maximum maturity? The price of a 182-day commercial paper is $8,000. If the annualized investment rate is 4.093%, what is the face value at maturity.
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 %
A T-bill with face value $10,000 and 79 days to maturity is selling at a bank discount ask yield of 2.6%. 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.) Answer is complete but not entirely correct. Price of the $ 4,294.45 bill b. What is its bond equivalent yield? (Use 365 days a year. Do not round intermediate calculations. Round your answer to...
4. You can purchase a T-bill that is 90 days from maturity for $9,900. The T-bill has a face value of $10,000. Calculate the T-bill's EAR. A) 4.00 percent. B) 4.16 percent. C)4.10 percent. D) 4.07 percent. E) 4.21 percent 5. A $5 million jumbo CD is paying a quoted 4.25% interest rate on 120-day maturity CDs. How much money could you withdraw at maturity if you invest in the CD? A) $5,000,000 B) $5,069,863 C) $4,929,167 D) $5,212,500 E)...
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