You decide to invest money in a T-bill. A T-bill is a bond that is sold...
Homework Answers
Solution :
13-week T-bill will get 10000-9800 = 200
So an year has 52 weeks
interest for 13 week period = 200/9800 = 0.02040816 for 4 times an year
nominal interest rate per year = 0.02040816 * 4 = 0.0816326
0.0816326 * 100 = 8.16%
Annual interest rate = 8.16%
If you liked the answer, please give an upvote. This will
be quite encouraging for me, thank-you!
Add Answer to:
You
decide to invest money in a T-bill. A T-bill is a bond that is sold...
3. A T-bill is a type of bond that is sold at a discount over the 18 suppose you buy a 13-Week T-bill with a face...
3. A T-bill is a type of bond that is sold at a discount over the 18 suppose you buy a 13-Week T-bill with a face value of $10,000 to means that in 13 weeks, the government will give $200. What annual interest rate have you earned? at over the face value. For example, le of $10,000 for $9,800. This oks, the government will give you the face value, earning yu u uu CISL, Wildl is uile Host you should...
V. Discount Bond Example 1: You purchase a T-Bill at $1,600 with a Face value of...
V. Discount Bond Example 1: You purchase a T-Bill at $1,600 with a Face value of $2,000. What is the discount bond rate? Example 2: What is the discount rate of a T-Bill purchased at $1,800 with a Face value of $2,000? Example 3: You purchase a Corporate Bond at $28,500 with a face value of $32,800. What is the discount bond rate? Example 4: You purchase a Corporate Bond at $29,700 with a face value of $32.800. What is...
Suppose you purchase a T-bill that is 124 days from maturity for $9,740. The T-bill has...
Suppose you purchase a T-bill that is 124 days from maturity for $9,740. The T-bill has a face value of $10,000. a. Calculate the T-bill’s quoted discount yield. b. Calculate the T-bill’s bond equivalent yield. (For all requirements, 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))
Suppose you purchase a T-bill that is 124 days from maturity for $9,740. The T-bill has...
Suppose you purchase a T-bill that is 124 days from maturity for $9,740. The T-bill has a face value of $10,000. a. Calculate the T-bill’s quoted discount yield. b. Calculate the T-bill’s bond equivalent yield. (For all requirements, 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))
Suppose you purchase a T-bill that is 102 days from maturity for $9,820. The T-bill has...
Suppose you purchase a T-bill that is 102 days from maturity for $9,820. The T-bill has a face value of $10,000. a. Calculate the T-bill's quoted discount yield. b. Calculate the T-bill's bond equivalent yield. (For all requirements, 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)) a. b. T-bill's quoted yield T-bill's bond equivalent...
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)...
Suppose you purchase a T-bill that is 103 days from maturity for $9,770. The T-bill has...
Suppose you purchase a T-bill that is 103 days from maturity for $9,770. The T-bill has a face value of $10,000. a. Calculate the T-bill’s quoted discount yield. b. Calculate the T-bill’s bond equivalent yield.
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....
Suppose you decide to buy a bond with $1000 face value with 1-year maturity. How much...
Suppose you decide to buy a bond with $1000 face value with 1-year maturity. How much you will pay for this bond if you use a discount rate of 5%?
A U.S. Treasury bill is an example of a O A. coupon bond O B. simple...
A U.S. Treasury bill is an example of a O A. coupon bond O B. simple loan O C. fixed-payment loan. O D. discount bond The estimated current purchasing price of a discount bond with a face value of $1500 and a yield to maturity of 9% is S response to the nearest two decimal place Round your What is the approximate yield to maturity on a discount bond that matures one year from today with a maturity value of...
3. A T-bill is a type of bond that is sold at a discount over the 18 suppose you buy a 13-Week T-bill with a face value of $10,000 to means that in 13 weeks, the government will give $200. What annual interest rate have you earned? at over the face value. For example, le of $10,000 for $9,800. This oks, the government will give you the face value, earning yu u uu CISL, Wildl is uile Host you should...
V. Discount Bond Example 1: You purchase a T-Bill at $1,600 with a Face value of $2,000. What is the discount bond rate? Example 2: What is the discount rate of a T-Bill purchased at $1,800 with a Face value of $2,000? Example 3: You purchase a Corporate Bond at $28,500 with a face value of $32,800. What is the discount bond rate? Example 4: You purchase a Corporate Bond at $29,700 with a face value of $32.800. What is...
Suppose you purchase a T-bill that is 102 days from maturity for $9,820. The T-bill has a face value of $10,000. a. Calculate the T-bill's quoted discount yield. b. Calculate the T-bill's bond equivalent yield. (For all requirements, 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)) a. b. T-bill's quoted yield T-bill's bond equivalent...
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)...
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....
A U.S. Treasury bill is an example of a O A. coupon bond O B. simple loan O C. fixed-payment loan. O D. discount bond The estimated current purchasing price of a discount bond with a face value of $1500 and a yield to maturity of 9% is S response to the nearest two decimal place Round your What is the approximate yield to maturity on a discount bond that matures one year from today with a maturity value of...
Most questions answered within 3 hours.
-
1. What is the present value of $400, three years in the future
if the interest...
asked 13 minutes ago -
The labor force minus the number of employed equals the number
of unemployed.
a. True
b....
asked 2 hours ago -
Determine the mass in units of grams [g] of 0.49 moles [mol]
of a new fictitious...
asked 2 hours ago -
A horizontal mass of M=5kg is on a spring and stretched to
x=0.5m when released from...
asked 3 hours ago -
26 of 50
"I have worked at the Arizona Humane Society for ten years, and
have...
asked 4 hours ago -
Compare and contrast zero based budgeting and incremental (or
base year) budgeting.
asked 4 hours ago -
4 pts 10. Which of the following hypothesis would be MOST
difficult to test experimentally? Group...
asked 4 hours ago -
A business owner makes 1,000 items a day. Each day he or she
contributes eight hours...
asked 4 hours ago -
A
circular loop in the plane of a paper lies inca0.65 T magnetic
field pointing into...
asked 4 hours ago -
A business owner is trying to decide whether to buy, rent, or
lease office space and...
asked 4 hours ago -
Thermal Storage Solar heating of a house is much more efficient
if there is a way...
asked 4 hours ago -
Considering the “fits” for group and job design dimensions,
suppose you had 12 employees with different...
asked 5 hours ago