Homework Help is Here – Start Your Trial Now!
Business
Finance
Treasury bill yield. An investor purchased a 91 day, $100,000 T-bill on its issue date for $99,180.46. After holding it for 40 days, she sold the T-bill for a yield of 3.778% (This yield refers to the rate of return the buyer will receive on the T-bill.) (a) What was the original yield on the T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = (b) For what price was the T-bill sold? (Do not include the $ sign in your answer.) Price T-bill sold for = (C) How much profit did the investment dealer make on this T-bill? (Do not include the $ sign in your answer.) Profit made by dealer = (d) What rate of return (per annum) did the investor realize while holding this T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = Check

Treasury bill yield. An investor purchased a 91 day, $100,000 T-bill on its issue date for $99,180.46. After holding it for 40 days, she sold the T-bill for a yield of 3.778% (This yield refers to the rate of return the buyer will receive on the T-bill.) (a) What was the original yield on the T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = (b) For what price was the T-bill sold? (Do not include the $ sign in your answer.) Price T-bill sold for = (C) How much profit did the investment dealer make on this T-bill? (Do not include the $ sign in your answer.) Profit made by dealer = (d) What rate of return (per annum) did the investor realize while holding this T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = Check

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
See similar textbooks
icon
Related questions
Question

part D

Treasury bill yield. An investor purchased a 91 day, $100,000 T-bill on its issue date for $99,180.46. After holding it for 40 days, she sold the T-bill for a yield of 3.778% (This yield refers to the rate of return the buyer will receive on the T-bill.) (a) What was the original yield on the T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = (b) For what price was the T-bill sold? (Do not include the $ sign in your answer.) Price T-bill sold for = (C) How much profit did the investment dealer make on this T-bill? (Do not include the $ sign in your answer.) Profit made by dealer = (d) What rate of return (per annum) did the investor realize while holding this T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = Check
Transcribed Image Text:Treasury bill yield. An investor purchased a 91 day, $100,000 T-bill on its issue date for $99,180.46. After holding it for 40 days, she sold the T-bill for a yield of 3.778% (This yield refers to the rate of return the buyer will receive on the T-bill.) (a) What was the original yield on the T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = (b) For what price was the T-bill sold? (Do not include the $ sign in your answer.) Price T-bill sold for = (C) How much profit did the investment dealer make on this T-bill? (Do not include the $ sign in your answer.) Profit made by dealer = (d) What rate of return (per annum) did the investor realize while holding this T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = Check
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 8 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Basic Accounting Terms
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS