Question
In: Finance
A T-bill that is 275 days from maturity is selling for $96,010. The T-bill has a...
A T-bill that is 275 days from maturity is selling for $96,010.
The T-bill has a face value of $100,000.
a. Calculate the discount yield, bond equivalent
yield, and EAR on the T-bill.
b. Calculate the discount yield, bond equivalent
yield, and EAR on the T-bill if it matures in 350 days.
Calculate the discount yield, bond equivalent yield, and EAR on the T-bill. (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))
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Required B
Calculate the discount yield, bond equivalent yield, and EAR on
the T-bill if it matures in 350 days. (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))
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|
Solutions
jeff jeffy answered 2 years agoRelated Solutions
A T-bill that is 275 days from maturity is selling for $96,010. The T-bill has a...
A T-bill that is 275 days from maturity is selling for $96,010.
The T-bill has a face value of $100,000.
a. Calculate the discount yield, bond equivalent yield, and EAR
on the T-bill.
b. Calculate the discount yield, bond equivalent yield, and EAR
on the T-bill if it matures in 350 days.
Calculate the discount yield, bond equivalent yield, and EAR on
the T-bill. (Use 360 days for discount yield and 365 days in a year
for bond equivalent yield...
A T-bill that is 180 days from maturity with a face value of $100,000 is selling...
A T-bill that is 180 days from maturity with a face value of
$100,000 is selling for $98,850.
(A) Calculate the discount yield, bond equivalent yield, and EAR
on the T-bill.
(B) Calculate the discount yield, bond equivalent yield, and EAR
on the T-bill if it matures in 150 days.
2-4 You can purchase a T-bill that is 73 days from maturity for $16,965. The T-bill...
2-4 You can purchase a T-bill that is 73 days from maturity for
$16,965. The T-bill has a face value of $17,000. a. Calculate the
T-bill’s quoted yield. (Use 360 days in a year. Do not round
intermediate calculations. Round your answer to 3 decimal places.
(e.g., 32.161)) T-bill’s quoted yield % b. Calculate the T-bill’s
bond equivalent yield. (Use 365 days in a year. Do not round
intermediate calculations. Round your answer to 3 decimal places.
(e.g., 32.161)) T-bill’s...
The discount rate for a T-Bill with a maturity date of December30, 2020 (80 days...
The discount rate for a T-Bill with a maturity date of December
30, 2020 (80 days from its settlement date) and an even value of
$100,000 is 0.225%. The price for this T-Bill isa. $90,950b. $19,950c. $9,950d. $99,950
Write the correct answer using a decimal form. 1.A T-bill with 41 days to maturity has...
Write the correct answer using a decimal form.
1.A T-bill with 41 days to maturity has a $10,000 par value, a
bid price of $9,995 and an asked price of $9,997. What is the asked
yield?
2. A T-bill has 247 days to maturity. The T-bill par value is
$1,000 and has an asked of 1.785%. What is the T-bill asked price
in dollars?
A T-bill that matures 40 days from today has a price of $9,978. If the bill has a face value of $10,000, what is the T-bill discount rate (/yield)?
A T-bill that matures 40 days from today has a price of $9,978.
If the bill has a face value of $10,000, what is the T-bill
discount rate (/yield)?0.05210.02170.01980.0152
A Treasury bill purchased in December 2016 has 67 days until maturity and a bank discount...
A Treasury bill purchased in December 2016 has 67 days until
maturity and a bank discount yield of 3.21 percent. Assume a $100
face value. a. What is the price of the bill as a percentage of
face value? (Do not round intermediate calculations. Round your
answer to 3 decimal places.) b. What is the bond equivalent yield?
(Do not round intermediate calculations. Enter your answer as a
percent rounded to 3 decimal places.)
A Treasury bill purchased in December 2016 has 115 days until maturity and a bank discount...
A Treasury bill purchased in December 2016 has 115 days until
maturity and a bank discount yield of 2.43 percent. Assume a $100
face value.
a. What is the price of the bill as a
percentage of face value? (Do not round intermediate
calculations. Round your answer to 3 decimal places.)
b. What is the bond equivalent yield?
(Do not round intermediate calculations. Enter your answer
as a percent rounded to 3 decimal places.)
A U.S. Treasury bill with 56 days to maturity is quoted at a discount yield of...
A U.S. Treasury bill with 56 days to maturity is quoted at a
discount yield of 1.20 percent. Assume a $1 million face value.
What is the bond equivalent yield? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 3 decimal places.)
Bond equivalent yield
%
1a.) What is the price of a T-bill that matures in 270 days if the discount...
1a.) What is the price of a T-bill that matures in 270 days if
the discount rate is 0.9% and par is $1,000?
1b.) What is the yield on a T-bill maturing in 180 days with a
$990 current price and a $1000 par value?
Please show work and original formulas
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