You would like to purchase a Treasury bill that has a $10,000 face value and is 68 days trom maturity. The current price of the Treasury bill is $9,875. Calculate the discount yicld on this Treasury bill. Answer

Q: For the following treasury bill bought in 2007, find (a) the price of the T-bill, and (b) the actual…

A: T-bills are short term investment generally up to 1 year. They are risk less as they are issued by…

Q: Suppose you take out a loan for 180 days in the amount of $15,500 at 13% ordinary interest. After 40…

A: answer principal amount = $15,500 rate of interest = 13% partly payment  after 40days  partly…

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: How much would you pay for the right to receive $4, 500 at the end of year 1, $3,500 at the end of…

A: The objective of this question is to calculate the present value of future cash flows. The present…

Q: The approximate effective cost (EC) of financing the discount price of trade credit under terms…

A: Discount (d) = 2% for 10 days and then net on last day, which is day 30. Total days (T) = 30…

Q: Suppose that you took out a loan at 12% interest for 200 days. If the amount of interest was…

A: Interest rate = r = 12% Time = t = 200 days Interest amount = i = $710.14   Number of days in Exact…

Q: 1. What is the effective interest rate for a payment plan of 30 equal payments of $89.30 per month,…

A: Effective interest rate is the interest rate that is earned or paid after considering the…

Q: What is the maturity value for a discount note of $7,000, 120-day, with a discount rate of 6%?

A: Note discount is the difference between the face value (or principal amount) of a promissory note…

Q: Assume that you take out a $7000 loan for 46 months at 7.5% APR. How much total interest will you…

A: Loan: It is the amount of money borrowed from a person or bank or company for a certain period…

Q: How much should you be willing to pay for an annuity that begins in 3 years and pays $100 dollars…

A: The monthly discount rate, expressed as a percentage, is an important financial measure used to…

Q: 3. The price of a certain item is P1,000, payable in O days but if paid in 30 days there will be a…

A: Formula: Simple Interest = Principle X Rate X Time/365 days

Q: n item is 10000, payable in 10 days but if paid in 30 days there will be a P30 discount. Find the…

A: Simple interest = Principal * rate* time (n).

Q: Determine the discount rate assuming the PV of $1,000 at the end of 1 year is $980?

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You just purchased an annuity that will pay you $24,000 a year for 25 years, starting today. What…

A: Annual payment (P) = $ 24000 Number of annual payments (n) = 25 Interest rate (r) = 8.5%

Q: Calculate the annualized discount rate and annualized investment rate on the purchase of 91- day…

A: Given: Face value =$3000Purchase price =$2900

Q: For the following treasury bill bought in 2007, find (a) the price of the T-bill, and (b) the actual…

A: Treasury Bills: Treasury bills are the borrowing instrument of the money market used by the…

Q: 3. Find the discount interest on Php 20,000 for 210 days at a discount interest rate of 8 %%. What…

A: Present value: The value calculated at the present date of a future cash flow is termed as present…

Q: You will receive a gift of $90,791 in 10 years. If the correct discount rate is 6 percent, what is…

A: As per the given information: Amount to be received = $90,791Period = 10 yearsDiscount rate = 6% To…

Q: If a 6-month T-Bill with a face value of $100 is purchased at a 8% annual discount, the buyer will…

A: Given information in question 6 month T bill Value at maturity = $100 Discount rate annual = 8%…

Q: Calculate the annual cost for years 1 through 9 of the following series of disbursements. Use an…

A: Present value is calculated by the formula:PV= FV1+inwhere FV= future value of moneyn= number of…

Q: You are planning to deposit in saving account $25000 three years from now, $35000 in the fourth…

A: Time value of money concept says that an amount invested today will have more value in future due to…

Q: Find the initial monthly payment on a 3/20 ARM of $178,802 if the interest rate is 5.35%. How long…

A: 3/20 means 3% discount you will get if you pay with in 20 days , if you not pay with in 20 days you…

Q: The face value of the note was $15,000, and the proceeds were $14,550. What was the discount rate of…

A: Discount rate = (1- Net proceeds / Face value) * Days in a year / Days of note

Q: 1. Find the discount interest if F = Php 50,000, d = 0.085 and t = 10 months.

A: Discount interest is the total amount accrued on certain principal value at some interest rate at…

Q: Suppose you purchase a bank accepted bill with a face value of $100,000. It has 120 days to maturity…

A: Bank accepted bills (BABs) don't have a traditional interest rate. Instead, the market sets an…

Q: You can purchase a 1 million treasury bill that is currently selling on a discount basis at 97 1/2 %…

A: Par value of T bill (F) = 1,000,000 Selling price (P) = 1,000,000*(97.50/100) = 975,000 Period (T) =…

Q: What would be your annualized discount rate% on the purchase of a 170-day Treasury bill for $4700…

A: Annualized discount rate can be calculated as: = (Maturity amount - Initial amount) / Initial amount…

Q: What would be the money market yield earned at maturity of a six month bill issued at a  discount…

A: Assuming a value of $1000

Q: If the annualized cost of the trade credit discount is 7.37%, what is the net trade credit period?…

A: Trade credit is a form of financing provided by suppliers to their customers. It allows customers to…

Q: In one year you will receive 1800. In two yeara you will receive 1, 900. The discount rate is 4%.…

A: PV = FV / (1 + r)nWhere:PV is the present valueFV is the future valuer is the discount rate (here,…

Q: The discount rate on a T-Bill is always a simple annual interest rate, using the formula, D= PVrt…

A: Treasury bills are the debt instruments issued by the Government for a short period generally for…

Q: You buy a K10 000 face value Treasury Bill in one month for K9 900. Calculate your holding period…

A: Holding period rate of return(HPR) on treasury bill is calculated using following equation HPR =…

Q: Suppose that you want to take out a loan and that your local bank wants to charge you an annual real…

A: Compute the nominal interest rate: Nominal interest rate is calculated by using following formula:

Q: For the following treasury bill bought in 2007, find (a) the price of the T-bill, and (b) the actual…

A: (a) Price of T-bill P = $21000 r = 3.04% = 0.0396 t = 9/12 = 0.75 Discount = P x r x t = 21000 x…

Q: We have a $500,000 line of credit with a 15% compensating balance requirement. The quoted interest…

A: A compensating balance is a minimum balance that must be maintained in a bank account, used to…

Q: Assume all sales are one-time credit sales with a probability of collection of 96 percent. The…

A: Variables in the question:Probability of collection=96%Variable cost per unit=$1.67Sales price per…

Q: The discount rate is 8.25%.  What is the present value of five annual $41 cashflows? The first…

A: Present Value = Future Value /((1+i)n) n is the Number of Years

Q: 4. If Php 35,000 is due on December 16, 2018, find the proceeds on April 20, 2018, if the discount…

A: Discount rate The discount rate in a discounted cash flow  analysis is the interest rate used to…

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.