Calculate discount yield on this t-bill

Assignment Help Financial Management
Reference no: EM131844015

You would like to purchase a T-bill that has a $17,000 face value and is 64 days from maturity. The current price of the T-bill is $16,875. Calculate the discount yield on this T-bill. (Use 360 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131844015

Questions Cloud

A rich relative has bequeathed you growing perpetuity : A rich relative has bequeathed you a growing perpetuity. What is the value of the bequest immediately after the first payment is? made?
Calculate the annual effective interest rate : The first payment is 200 and then they payments increase by 50 each year. Calculate the annual effective interest rate.
Calculate the true promised payments under this contract : Calculate the true promised payments under this contract, including the deferred payments with interest.
How much will you accumulate at retirement : How much will you accumulate at retirement after 48 years of investing?
Calculate discount yield on this t-bill : Calculate the discount yield on this T-bill.
Investor who is not holding well diversified portfolio : which of the following investments is clearly preferred to the others for an investor who is not holding a well diversified portfolio?
Calculate the accumulated value in the account : Calculate the accumulated value in the account just after the last(48th) monthly deposit, the annual nominal interest rate is 3.5%, convertible monthly.
Life insurance death benefit in annual payments : Danielle is told she can receive 250000 life insurance death benefit in annual payments of 25000 starting today for 11 years total. Calculate balloon payment.
Amount he needs to write check for to pay off the loan : Calculate the amount he needs to write a check for to pay off the loan. The annual nominal interest rate is 3.6%, convertible monthly.

Reviews

Write a Review

Financial Management Questions & Answers

  What value would whitehurst place on the ivanhoe stock

If Whitehurst requires a 12 percent rate of return on investments of this type, what value would Whitehurst place on the Ivanhoe stock?

  Portfolios with high market capitalizations

Portfolios with high market capitalizations will have positive alphas if the market portfolio is not efficient. The book-to-market is the observation that firms with high book-to-market ratios have positive alphas. If the market portfolio is not effi..

  Primary objective is to obtain long term income to finance

An engineering company in Virginia that owns 250 acres of valuable land has decided to lease the mineral rights to a mining company. The primary objective is to obtain long term income to finance ongoing projects 5 and 15 years from the present time.

  Type of security options are available to protect financials

What types of security options are available to protect the financials of my small business?

  Determine the amount of safety stock and Reorder point

Determine the following Amount of safety stock, in units, Average inventory and annual carrying costs and Reorder point.

  What is the level of required new funds

BHS Inc. determines that sales will rise from $300,000 to $500,000 next year. Spontaneous assets are 70% of sales and spontaneous liabilities are 30% of sales. BHS has a 10% profit margin and a 40% dividend payout ratio. What is the level of required..

  Allowable payback and discounted payback statistic

the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively.

  Sensitivity analysis in evaluating project risk

For the given cash flows below, assume the cash flow is the same in the next 2 years. Compute the NPV for each project, and compute the incremental IRR. Compare and explain why NPV always gives the correct decision. Compare and contrast the uses of b..

  Inventory value as result of the change in exchange rates

Suppose 1 year ago, Miller Company had inventory in Britain valued at 1.5 million Swiss francs. The exchange rate for dollars to Swiss francs was 1 franc=1.15 dollars. Today, the exchange rate is 1 Swiss franc=1.06 U.S. dollars. The inventory in Swit..

  Determine which insulation

Determine which insulation you will choose if you plan to live in the house for 10 years. Use an interest rate of 8%.

  What is maximum payout ratio it can afford for next years

Consider the following year 0 statement for Blaircorn: Sales growth 10% Current assets/Sales 15% Current liabilities/Sales 8% Net fixed assets/Sales 77% Costs of goods sold/Sales 50% Depreciation rate 10% Interest rate on LT debt 10.00% Interest paid..

  How would this affect their required rate of return

Clumsy Corp. is planning to issue new 30-year bonds. Initially, the plan was to make the bonds non-callable. If the bonds were made callable after 10 years at a 10% call premium, how would this affect their required rate of return?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd