On 31st March 2016 you saw the following information about bonds. Name of Security Face Value Maturity Date Coupon Rate Coupon Date(s) Zero Coupon 10,000 31st March 2026 N.A. N.A. t-Bill 1,00,000 24th June 2016 N.A. N.A. 10.71%GOTT 2026 100 31st March 2026 10.71 31st March 10%GOTT 2021 100 31st March 2021 10 31st March & 31st October 1B) What will be the annualized % yield of the treasury bill of face value which is currently traded at 98,000?
On 31st March 2016 you saw the following information about bonds. Name of Security Face Value Maturity Date Coupon Rate Coupon Date(s) Zero Coupon 10,000 31st March 2026 N.A. N.A. t-Bill 1,00,000 24th June 2016 N.A. N.A. 10.71%GOTT 2026 100 31st March 2026 10.71 31st March 10%GOTT 2021 100 31st March 2021 10 31st March & 31st October 1B) What will be the annualized % yield of the treasury bill of face value which is currently traded at 98,000?
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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Question
On 31st March 2016 you saw the following information about bonds.
|
Name of Security |
Face Value |
Maturity Date |
Coupon Rate |
Coupon Date(s) |
|
Zero Coupon |
10,000 |
31st March 2026 |
N.A. |
N.A. |
|
t-Bill |
1,00,000 |
24th June 2016 |
N.A. |
N.A. |
|
10.71%GOTT 2026 |
100 |
31st March 2026 |
10.71 |
31st March |
|
10%GOTT 2021 |
100 |
31st March 2021 |
10 |
31st March & 31st October |
1B) What will be the annualized % yield of the treasury bill of face value which is currently traded at 98,000?
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