1. U.S. Treasury Bill Auction Rates-March 2009. The interest yields on U.S. Treasury securities in early 2009 fell to very low levels as a result of the combined events surrounding the global financial crisis. Calculate the simple and annualized yields for the 3-month and 6-month Treasury bills auctioned on March 9, 2009, listed here. 3-Month T-Bill Treasury bill, face value Price at sale Discount $10,000.00 $9,993.93 $6.07 6-Month T-Bill $10,000.00 $9,976.74 $23.26

1. U.S. Treasury Bill Auction Rates-March 2009. The interest yields on U.S. Treasury securities in early 2009 fell to very low levels as a result of the combined events surrounding the global financial crisis. Calculate the simple and annualized yields for the 3-month and 6-month Treasury bills auctioned on March 9, 2009, listed here. 3-Month T-Bill Treasury bill, face value Price at sale Discount $10,000.00 $9,993.93 $6.07 6-Month T-Bill $10,000.00 $9,976.74 $23.26

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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U.S. Treasury STRIPS, close of business February 15, 2019: Maturity Feb 2020 Price 97.123 Maturity Price Feb 2023 90.066 Feb 2021 94.770 Feb 2024 Feb 2022 92.424 Feb 2025 87.528 85.410 a. According to the pure expectations theory of interest rates, how much do you expect to pay for a five-year STRIPS on February 15, 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.) Price b. According to the pure expectations theory of interest rates, how much do you expect to pay for a two-year STRIPS on February 15, 2022? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.) Price
For most of 2010-2020, Three Month Treasury Bill rates were near: a) 0% b) 3% c) 5% d) 6%
please answer and show work if needed
On December 1, 2015, the U.S. Treasury issued a $1,000, 10-year inflation indexed notes with a coupon rate of 2% (paid semi-annually on Dec 1 and June 1). On the date of issue, the consumer price index (CPI) was 231, but had increased to 259 on December 1, 2020. What was the amount of the coupon payment made on December 1, 2020? Select one: a. $10.46 b. $11.21 c. $20.00 d. $22.42 e. None of the above.
On April 1, $10,000.00 364-day treasury bills were auctioned off to yield 1.91%. (a) What is the price of each $10,000.00 T-bill on April 1? (b) What is the yield rate on July 19 if the market price is $9,813.45? (c) Calculate the market value of each $10,000.00 T-bill on September 24 if the rate of return on that date is 2.75%. (d) What is the rate of return realized if a $10,000.00 T-bill purchased on April 1 is sold on December 16 at a market rate of 2.796%1 (a) The price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A4
The numbers provided are in thousands of dollars. All securities are selling at par. Treasury bill $ 90 Time deposits $1,100 Treasury notes $ 55 Fed funds sold $ 230 Treasury bonds $ 176 Demand deposits $2,500 Loans $4,679 Equity $1,170 Notes: All Treasury bills have six months until maturity. One-year Treasury notes are priced at par and have a coupon of 7 percent paid semiannually. Treasury bonds have an average duration of 4.5 years and the loan portfolio has a duration of 7 years. Time deposits have a 1-year duration and the Fed funds duration is .003 years. Question: If relative change in all market interest rates is a decrease of 1%, calculate the impact on…
Nikul
On April 1, $10,000.00 364-day treasury bills were auctioned off to yield 3.24%. (a) What is the price of each $10,000.00 T-bill on April 1? (b) What is the yield rate on July 10 if the market price is $9,682.27? (c) Calculate the market value of each $10,000.00 T-bill on October 20 if the rate of return on that date is 4.104 %. (d) What is the rate of return realized if a $10,000.00 T-bill purchased on April 1 is sold on December 5 at a market rate of 4.232 %? (a) The price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The yield rate is %. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.) (c) The market value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (d) The rate of return realized is. (Round the final answer to two decimal places as needed. Round all…

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