On the 18th July 2020, I purchased a 2.45%, 21st August 2030 CGB at ayield of 1.346%. then on the 16th of September 2021 on sold it when theyield was 1.228%. Assuming the reinvestment rate was 1.25% pa simpleinterest, what was the holding period yield for this investment?Express your answer as a percentage to 3 decimal places. eg not 0.0625but 6.253W

Assume: The par value of CGB=$1000Working Note #1Calculation of coupon payment:First year complete…

Answered: On the 18th July 2020, I purchased a…

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 91-day, $10,000.00 T-bill on its issue date for $9915.98. After holding it for 66 days, she sold the T-bill for a yield of 3.01% (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? GOOOD (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.) (c) 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)
I calculated the PV value of a $100 payment stream at 1% for 6 years payable at the beginning of the year to be $585.34. Likewise, if I have a balance today of $584.34 in 6 years this balance would be paid off if I deduct $100 at the beginning of each year at 1% interest. (See image capture 1) However I run into issues whe I use two interest rates. Time Payment Rate PV 0 $100 1% 100/(1.01)^0=100 1 $100 1% 100/(1.01)^1=99.01 2 $100 1% 100/(1.01)^2=98.03 3 $100 2% 100/((1.01)^2*(1.02))=96.11 4 $100 2% 100/((1.01)^2*(1.02)^2)=94.22 5 $100 2% 100/((1.01)^2*(1.02)^3)=92.38 The Total PV for this stream is $579.75. So why doesn't the following equation yield zero: Time Payment Rate Balance…
Find the present value PV of the given future value. (Round your answer to the nearest cent.) future valye $5,250 at 4.875 simple interest for 670 days PV = $
Hiren Add explanation
Assume that in 2020, a Liberty Seated half dollar issued in 1891 was sold for $209,000. What was the rate of return on this investment? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Using a scientific calculator: Find the present value of the given future value: FV is &1,311 at 6 1/2 % simple interest from February 10 to October 15.
Use the continuous compound interest formula to find the indicated value. A= $16,687; P=$10,400; t= 60 months; r= ?
P 9-1 Investment Scenarios (LO 9-3) Arkansas Best Freightways is considering a purchase of three different potential trucks. it is considering three different investment scenarios and their respective cash flows. Arkansas Best Freightways use a cost of capital of 9 percent to evaluate the investments. Year Year 0 (today) Year 1 Year 2 Year 3 Year 4 Buy new truck Increased profits Increased profits Increased profits Increased profits Net cash flows over life (not discounted) Investment 1 (85,000) 25,000 25,000 25,000 25,000 $ Investment 2 (105,000) 20,000 30,000 40,000 50,000 Required: 1. Calculate the net cash flows (not discounted) over the life of the three investments (years 0 to 4). (Negative amounts should be entered using a minus sign.) Answer is complete and correct. Investment 1 15,000 Investment 2 $ Investment 3 (125,000) 40,000 30,000 20,000 10,000 Investment 3 (25,000) 35,000 S Cost of Capital 9%
An investment has a positive net present value of £7,750 at 12% and a negative NPV of £2,250 when the interest rate is increased by 6%.What is the approximate IRR for the investment (to 2 decimal places)?a. 21.30%b. 18.78%c. 16.65%d. 10.65%
Algoe expects to invest $2,500 annually for 15 years to yield an accumulated value of $62,822.50 on the date of the last investment. For this to occur, what rate of interest must Algoe earn? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Future Value Annuity Payment Table Factor Interest Rate %
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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