How much would you pay for a treasury bill that matures in one year and pays...

How much would you pay for a treasury bill that matures in one year and pays $10,000 if you require a 3% discount rate (excel version please).

Solutions

Expert Solution

Amount paid at maturity	$ 10,000
Years to maturity	1
Discount rate	3.00%
Present value	$ 9,708.74

Excel formula used:

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

How much would you pay for a P&G Bond that pays a 5% coupon, matures in...

How much would you pay for a P&G Bond that pays a 5% coupon, matures in 20 years and the yield on current bonds are 4%?

An investor purchased a Treasury bill for $975. The bill pays $1,000 at maturity in exactly one year.

An investor purchased a Treasury bill for $975. The bill pays $1,000 at maturity in exactly one year. (a) Compute the holding period rate of return. (b) Does worldwide demand for T-bills increase, decrease, or remain unchanged during periods of economic, political or social instability? (c) Are T-bills more risky, equally risky, or less risky than equity investments?

How much are you going to pay? How much insurance company pays?

Use the following information to answer the following questions deductible: $1000 coinsurance: 20% out-of-pocket maximum: $8000 let's say you have $30000 in covered medical expenses in January: How much are you going to pay? How much insurance company pays? if you have an additional $20000 in medical expenses: how much are you going to pay? how much insurance company pays?

How much would you pay for a 6-month T-bill with a face value of $12,500 and...

How much would you pay for a 6-month T-bill with a face value of $12,500 and a rate that would yield 3.5% if there is 125 days remaining in the term

Suppose a bond such as a Treasury bill, or T-bill, promises to pay $1000 a year,...

Suppose a bond such as a Treasury bill, or T-bill, promises to pay $1000 a year, and the interest rate is 15%. Given this information, we know that the bond's price must be: Answer the following questions using the following data Y=C+I+G C=120+0.5(Y-T) I=100-10r T=40 = Y-20r M=600 P= 2 Identify the each of the variables and briefly explain their meanings. Find the IS curve and the LM curve and graph them in a diagram. Determine the equilibrium interest...

What would you pay for a $160,000 debenture bond that matures in 15 years and pays...

What would you pay for a $160,000 debenture bond that matures in 15 years and pays $8,000 a year in interest if you wanted to earn a yield of: Click here to view factor tables 3%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Amount to Pay $enter a dollar amount to pay rounded to 0 decimal places eTextbook and Media 4%? (Round factor values to 5 decimal places, e.g....

What would you pay for a $225,000 debenture bond that matures in 15 years and pays...

What would you pay for a $225,000 debenture bond that matures in 15 years and pays $11,250 a year in interest if you wanted to earn a yield of a. 3% B. 4% C. 5%

How much would you pay today for an investment that pays $0 annually, but earns 8%...

How much would you pay today for an investment that pays $0 annually, but earns 8% annual interest and has a $13,500 face value at the maturity at the end of 4 years?

How much would you be willing to pay for an investment that will pay you and...

How much would you be willing to pay for an investment that will pay you and your heirs $16,000 each year in perpetuity if the first payment is to be received in 9 years? a) Assuming your opportunity cost is 6%? b) if you want the payments to grow by 2% indefinitely. problem must be in excel

"One-year Treasury bills currently earn 3.25%; You expect that one year from now, 1-year Treasury bill...

"One-year Treasury bills currently earn 3.25%; You expect that one year from now, 1-year Treasury bill rates will increase to 3.55% and that two years from now, one-year Treasury bill rates will increase to 4.15%; If the unbiased expectations theory is correct, what should the current rate be on three-year Treasury securities?" 3.56% 5.84% 3.42% 3.65% 3.93%

Subjects