You have just bought a Government of Ghana Three Year Note. The Note has a face value of 1000,000cedis and bears a coupon of 12% payable semi-annually. The Note was sold to you for 1050756.921 cedis. If you hold the Note till the end of the three years and receive all the coupons as schedule what will be your yield to maturity.

Q: Assuming you bought a 182-day Treasury Bill with a face value Ghc 20,000.00 and held it for 45days.…

A: Purchase price = Face value/(1+interest rate*days to maturity/360) Accrued interest = Purchase…

Q: An investor purchasing a British consol is entitled to receive annual payments from the British…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: You take out a 5-year loan of $20,000 from a bank today, where repayments are made at the end of…

A: Given, The loan amount is $20,000 Term of loan is 5 years Nominal rate is 8% compounded monthly.

Q: Suppose that if you purchase a US Treasury bond, it will pay you a one-time payment of $5000 in 10…

A: A Treasury Bond is a bond issued by the Government of USA. It carries no risk of default and are…

Q: what rate compounded continuous would you earn?

A: Future Value: It represents the future worth of the current sum of amount and is estimated by…

Q: 1. A security pays you an annual amount of $900 for 10 years. The seller of the security requires…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: You are thinking about buying a savings bond. The bond costs $42 today and will mature in 13 years…

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: An investor is considering the purchase of a 2-year floating-rate note that pays interest…

A: Discount margin is the return which investors get up and above the indexed return. So the difference…

Q: Suppose you made a 90-day investment with a maturity value of $18,000. Find the present value of the…

A: The maturity value is the future value. We need to determine the present value of this. For that we…

Q: A simple "EE US Treasury Savings Bond" pays the holder $1000 in 30 years. Given that the applicable…

A: To calculate  the bond cost we will use the below formula   Bond cost today = FV/[1+(r/m)]n*m Where…

Q: A promissory note will pay $52,000 at maturity 8 years from now. If you pay $25,000 for the note…

A: A promissory note is a written promise made by one party (the "issuer" or "maker") to pay a specific…

Q: If you borrow £100 from a payday lender in the United Kingdom, you are expected to pay back £120 in…

A: Variables in the question:Loan amounr=£100Amount paid back=£120n=15 daysAssume 365 days in a year

Q: ppose in the question above, the tuition obligations have a Macaulay duration of 4.35 in years, and…

A: Duration of the bond shows the weighted period of the bond required to recover the all cash flow…

Q: You have an opportunity to purchase a bond that will pay out $815 in 10 months. If you would like…

A: Payout in 10 months = $ 815 Interest rate = 2.2% Period = 10 months

Q: You take a loan of 10lacs taka from NRB Bank with a repayment agreement of 1356100 tk after 3.5…

A: Loan amount (L) = 1000000 tk Repayment amount (R) = 1356100 tk n = 3.5 years Let the yield to…

Q: Recently, a bank offered six-month CDs (Certificate of Deposit) at 6.0% compounded monthly. (Round…

A: Original Value = $1000 Compounding Frequency = 12 Interest Rate = 6% Period = 6 months    a) Annual…

Q: Grand Opening Bank is offering a​ one-time investment opportunity for its new customers. A customer…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: If you want to earn 7% annual simple interest on an investment, how much should you pay for a note…

A: Simple interest is the type of interest that is calculated on the original amount, It is calculated…

Q: You received an offer to invest 2000 SEK each month into bonds of Swedish companies. According to…

A: Future value is the expected at value of the investment at a future date, for a given period of…

Q: If you want to earn 5% annual simple interest on an investment, how much should you pay for a note…

A: The question is based on the concept of time value.

Q: You purchase a TIP note with an onginal principal amount of $1,000,000 and a 4 percent annual coupon…

A: TIP note pays coupons as per the semiannual inflation rate in a given period. If inflation is…

Q: You have decided to buy a perpetual bond. The bond makes one payment at the end of every year…

A: To calculate the payment at the end of each we will use below formula   Annual payment = PV*r Where…

Q: A US savings bond will pay you $1,000 in 3 years. If return is 2.85%, how much shoudl you pay for…

A: The payment made for bond at current year will be such as investor will realize 2.85% in each of…

Q: Grand Opening Bank is offering a​ one-time investment opportunity for its new customers. A customer…

A: Bond is long-term debt raising instrument used by organizations and government to raise funds from…

Q: You deposit £942 every two years start from the end of Year 4 to the end of Year 40. The interest…

A: We must divide this issue into many steps in order to find a solution: Step 1: Find the…

Q: You currently have a balance of $9,000 and you pay an interest rate of 17% per year on the card.…

A: The outstanding balance is $9,000The interest rate is 17% per yearThe minimum payment is 3%The time…

Q: Jon is to receive 10 annual payments where the first payment of 10,000 will be paid in one ye…

A: Pv of cash flow = Cash flow * PV FACTOR.

Q: If you want to earn 7% annual simple interest on an investment, how much should you pay for a note…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: How much do you have to deposit today so that beginning 11 years from now you can withdraw ​$12,000…

A: Given, Amount that can be withdrawn from years 11 to 16 is $12000 Additional amount at end of 16 th…

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.