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Sandra Waterman purchased a 52-week, $4,000 T-bill issued by the U.S. Treasury. The purchase price was $3,985. a. What is the amount of the discount? b. What is the amount Ms. Waterman will receive when the T-bill matures? c. What is the current yield for the 52-week T-bill at the time of purchase? Note: Enter your answer as a percent rounded to 2 decimal places. a. Discount amount b. Maturity value c. Current yield %

Sandra Waterman purchased a 52-week, $4,000 T-bill issued by the U.S. Treasury. The purchase price was $3,985. a. What is the amount of the discount? b. What is the amount Ms. Waterman will receive when the T-bill matures? c. What is the current yield for the 52-week T-bill at the time of purchase? Note: Enter your answer as a percent rounded to 2 decimal places. a. Discount amount b. Maturity value c. Current yield %

Essentials Of Investments
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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I really need help in calculating this bond yeild for this T-Bill

Sandra Waterman purchased a 52-week, $4,000 T-bill issued by the U.S. Treasury. The purchase price was $3,985. a. What is the amount of the discount? b. What is the amount Ms. Waterman will receive when the T-bill matures? c. What is the current yield for the 52-week T-bill at the time of purchase? Note: Enter your answer as a percent rounded to 2 decimal places. a. Discount amount b. Maturity value c. Current yield %
Transcribed Image Text:Sandra Waterman purchased a 52-week, $4,000 T-bill issued by the U.S. Treasury. The purchase price was $3,985. a. What is the amount of the discount? b. What is the amount Ms. Waterman will receive when the T-bill matures? c. What is the current yield for the 52-week T-bill at the time of purchase? Note: Enter your answer as a percent rounded to 2 decimal places. a. Discount amount b. Maturity value c. Current yield %
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