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15. What is the yield on a T-bill maturing in 180 days with a $990 current price and a $1000 par value? (5) 16. What is the c

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15. T-bills are zero coupon bonds issued at a discount. Hence the returns are reflected in the gain by holding the bill till maturity (180 days). Such returns would be $1,000-$990=$10. Yield can be calculated using the formula: (Returns / Price) * (360/holding period). Hence yield = ($10/$990)*(360/180) = 2.02%

16. Stock pays the dividend of $3 and returns 15%. This 15% is a dividend yield. Dividend Yield = Dividend / Market price. Hence Market Price = Dividend / Dividend Yield = 3/15% = $20

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