1. Price of T-bill = $996.15
2. Rate of return = 0.2004%
Note: Annual Rate of return = 0.2004%×52/26
= 0.4008%
Suppose that you purchased a 26-week T-bill at $998 (assuming the face value is $1,000). Now the asked bank discoun...
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...
you would like to purchase a t bill that has a 10,500 face
value and is due in 60 days from maturity. the current price of the
t bill is 10,375. calculate the discount yield on this
T-bill.
You would like to purchase a T-bill that has a $10,500 face value and is 60 days from maturity. The current price of the T-bill is $10,375. Calculate the discount yield on this T-bill. (Use 360 days in a year. Do not...
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
What is the purchase price of a 26-week T-bill with a maturity value of $1000 that earns an annual interest rate of 6.25X7 Round dollar amounts to the nearest cent. Use 360 days O A $1025.50 O B. $97442 OC. $25.58 OD. $1000
You would like to purchase a T-bill that has a $13,500 face value and is 66 days from maturity. The current price of the T-bill is $13,375. Calculate the discount yield on this T-bill. (Use 360 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Discount yield
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...
10. A dealer formation, at what price is a dealer willing to sell this T-bill quotes 90-day T-Bill with a face value of $1,000 at 4.80% bid and 4.10% ask Given this in- 11. investor purchased a TIPS with face value of Si ,00,00 and a 2% perce iannually). What will the second coupon payment if the semiannual inflation during the first six months was 2.8% while the semiannual inflation over the second six months was 22%? nt annual coupon...
Your grandfather purchased a $1,000 face-value bond 10 years ago. When he purchased the bond, it had 30 years to maturity and a coupon rate of 9% paid annually. Now you want to sell the bond and read that the yield on similar bonds is 3.65%. What can you sell the bond for today?
You just purchased a 15-year bond with an 10 percent annual coupon. The bond has a face value of $1,000 and a current yield of 10.75 percent. Assuming that the yield to maturity of 9.60 percent remains constant, what will be the price of the bond ten years from now? a. Less than $489 b. Between $489 and $996 c. Between $996.01 and $1080 Between $1080.01 and $1,200 e. Greater than $1,200