AT - bill with face value $10,000 and 89 days to maturity is selling at a bankdiscount ask yield of3.6%.Required:a. What is the price of the bill? (Use 360 days a year. Do not roundintermediate calculations.Round your answer to 2 decimal places.)b. What is its bond equivalent yield? (Use 365 days a year. Do not roundintermediatecalculations. Round your answer to 2 decimal places.)

Calculating the Price and Bond Equivalent Yield of the AT-Billa: Price of the BillGiven:Face value =…

Answered: AT - bill with face value $10,000 and…

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

See similar textbooks

Similar questions

AT-bill with face value $10,000 and 87 days to maturity is selling at a bank discount ask yield of 3.4%. What is its bond equivalent yield? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) The answer is 3.43 %, show how to get this answer
ASAP[
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 95.375 percent of its face value and is 60 days from maturity? (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)) Discount yield Bond equivalent yield Effective annual return
I want to correct answer accounting
Give typing answer with explanation and conclusion The price of a newly issued 3-month T-bill with a face value of $1,000 is $992. A) What is the bond-equivalent yield? B) What is the discount yield?
AT - Bill that is 225 days from maturity is selling for $98, 850. The T. Bill has a face - value of $ 100,000 (LG 5 - 2) Calculate the Discount Yield on the T. Bill. Calculate the Bond Equivalent Yield on the T Bill. Calculate the EAR (Equivalent Annual Return) on the T. Bill. What would the Bond Equivalent Yield be, if all other factors remain the same, but the T. bill has a maturity of 300 days. B
A T-bill with face value $10,000 and 82 days to maturity is selling at a bank discount ask yield of 2.9%. What is the price of the bond equivalent yield? Use 365 days per year.
a: What is the bond equivalent yield on a Treasury-bill with a face value of $3,000000, a discount rateof 3% and 40 days until maturity? b: What does VAR(95%) of $32,000 mean? c: Use the following to calculate the effective borrowing cost of commercial paper• Face value = 19,000,000• Discount rate = 0.5%• Dealer Fee = 0.2%• Commitment Fee = 0.17%• Days to maturity = 50
Please help me to solve this problem
A T-bill with face value $10,000 and 82 days to maturity is selling at a bank discount ask yield of 2.9%. What is the price of the bond equivalent yield?
What is the discount yield, bond equivalent yield, and effective annual return on a $2 million commercial paper issue that currently sells at 97.50 percent of its face value and is 123 days from maturity? (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 percentage answers to 3 decimal places. (e.g., 32.161)) Discount yield Bond equivalent yield Effective annual return % % %
A Treasury bill that settles on May 18, 2022, pays $100,000 on August 21, 2022. Assuming a discount rate of 5.23 percent, what are the price and bond equivalent yield? Use Excel to answer this question. Note: Round your price answer to 2 decimal places. Enter your yield answer as a percent rounded to 3 decimal places. Price Bond equivalent yield %

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS