Calculate the discount yield-bond equivalent yield

Assignment Help Financial Management

Reference no: EM132059425

A T-bill that is 235 days from maturity is selling for $95,930. The T-bill has a face value of $100,000.

a. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill. (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Discount yield %

Bond equivalent yield %

EAR %

b. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill if it matures in 310 days. (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 2 decimal places.(e.g., 32.16))

Discount yield %

Bond equivalent yield %

EAR %

Reference no: EM132059425

Questions Cloud

Describe the sequence of transformations : Describe the sequence of transformations from f to g. (Select all that apply.)

Identify a recent investigation that incorporated the use : INFO 373 : Identify a recent investigation (dated from 2008 on) that incorporated the use forensics and explain it was used in combination.

Coast guard station and the hospital : If the angle formed by light beams to C and H is 143 degrees what is the distance CH (by sea) between the coast guard station and the hospital?

Examine whether the results are minima or maxima : Use Lagrange Multipliers to find the maximum value of f(x,y) = 2xy subject to the constraint 5x+4y=100.

Calculate the discount yield-bond equivalent yield : Calculate the discount yield, bond equivalent yield, and EAR on the T-bill.

Determine the most important three for the initial rollout : As one of the operations managers in the department, you have received a memo on the new policy and an associated task.

Discuss about insight opinions or challenge opinions : Add additional insight opinions or challenge opinions and you can visit a couple of the web sites contributed and share your opinion of these sites.

Bottom of the ladder slides away from the wall : The bottom of the ladder slides away from the wall at a constant rate of 2 ft per second. How fast is the top of ladder sliding down when bottom is 5ft

What is accumulated value of the rrsp after seven years : What is the accumulated value of the RRSP after seven years?

User Account

All Pages