I want to correct answer accounting Suppose you purchase a T-bill that is 125 days frommaturity for $9,765. The T-bill has a face value of $10,000.a) Calculate the T-bill's quoted discount yield.b) Calculate the T-bill's bond equivalent yield.

Quoted Discount Yield (QDY):QDY=Face Value−Purchase Price/Face Value×360/Days to MaturityBond…

Answered: Suppose you purchase a T-bill that is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If you have a coupon bond, its face value is $1,000 and the coupon rate is 4%. Complete the following table, then calculate the rate of return for the bond. If you know that it was purchased at the nominal value, comment on the results. due date return at maturity the price 2 0.02 3 0.04 5 0.06 Present Value Annuity value % n value % n 0.961 0.02 2 1.97 0.02 2 0.925 0.04 2 1.89 0.04 2 0.889 0.04 3 2.78 0.04 3 0.906 0.02 5 4.71 0.02 5 0.747 0.06 5 4.21 0.06 5
A discount bond selling for $7,000 with a face value of $10,000 in one year has a yield to maturity of ___________. (Show the solution as well)
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Suppose you purchase a T-bills that is 125 days from maturity for $9,765. The T-bills has a face value of $10,000.a. Calculate the T-bills’s quoted discount rate. b. Calculate the T-bills’s annualized rate.c. Who are the major issuers of and investors in money market securities?
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Suppose you purchase a T-bill that is 125 days from maturity for $9,765. The T-bill has a face value of $10,000. a) Calculate the T-bill's quoted discount yield. b) Calculate the T-bill's bond equivalent yield.