Answered: A company has purchased an asset for…

A company has purchased an asset for $188,341. If they require a return of 12.78%, how much must they sell the asset for in 6 years?(Round to 2 decimal places.)

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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An investor purchased a 182-day, $100,000.00 T-bill on its issue date for $98,838.39. After holding it for 109 days, she sold the T-bill for a yield of 2.28% (a) What was the original yield of the T-bill? (b) For what price was the T-bill sold? (c) What rate of return (per annum) did the investor realize while holding this T-bill? (a) The original yield of the T-bill was% (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed) (b) The T-bill sold for $ (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed) (e) The investor realized a rate of return of (Round the final answer to two decimal places as needed Round all intermediate values to six decimal places as needed.)

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