On April 1, $25,000.00 364-day treasury bills were auctioned off to yield 2.38% (a) What is the price of each $25,000.00 T-bill on April 17 (b) What is the yield rate on July 6 if the market price is $24,399.48? (c) Calculate the market value of each $25,000.00 T-bill on September 16 if the rate of return on that date is 3.654% (d) What is the rate of return realized if a $25,000.00 T-bill purchased on April 1 is sold on December 23 at a market rate of 2.838%? (a) The price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
On April 1, $25,000.00 364-day treasury bills were auctioned off to yield 2.38% (a) What is the price of each $25,000.00 T-bill on April 17 (b) What is the yield rate on July 6 if the market price is $24,399.48? (c) Calculate the market value of each $25,000.00 T-bill on September 16 if the rate of return on that date is 3.654% (d) What is the rate of return realized if a $25,000.00 T-bill purchased on April 1 is sold on December 23 at a market rate of 2.838%? (a) The price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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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Transcribed Image Text:On April 1, $25,000.00 364-day treasury bills were auctioned off to yield 2.38%.
(a) What is the price of each $25,000.00 T-bill on April 1?
(b) What is the yield rate on July 6 if the market price is $24,399.48?
(e) Calculate the market value of each $25,000.00 T-bill on September 16 if the rate of return on that date is 3.654%
(d) What is the rate of return realized if a $25,000.00 T-bill purchased on April 1 is sold on December 23 at a market rate of 2.838%?
(a) The price is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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