Calculate the discount yield on this t-bill

Assignment Help Financial Management

Reference no: EM131442524

You would like to purchase a T-bill that has a $10,000 face value and is 68 days from maturity. The current price of the Treasury bill is $9,875. 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))

Discount yield %------

Reference no: EM131442524

Questions Cloud

Explain the price discrimination : Explain why price discrimination may be regarded as being in the best interest of the firm.

Examples of a eurodollar deposit : Which of the following is / are examples of a Eurodollar deposit?

Key economic data release was weaker than expected : A manager signs a contract with a French company. The spot exchange rate is 1.15 US dollars per euro, and the French company agrees to pay one million euro in three business days. Hours after the contract was signed, a key economic data release was w..

Indifferent between accepting the project and not accepting : Your firm is contemplating the purchase of a new $592,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $57,600 at the end of that time. At what level of pretax cost sa..

Calculate the discount yield on this t-bill : You would like to purchase a T-bill that has a $10,000 face value and is 68 days from maturity. The current price of the Treasury bill is $9,875. Calculate the discount yield on this T-bill.

The current exchange rate for the brazilian re : The current exchange rate for the Brazilian real is 3.85 BRL per US dollar. The current exchange rate for the British pound is 0.69 GBP per US dollar.

What is the discount yield and bond equivalent yield : What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 97 3/8 percent of its face value and is 65 days from maturity?

Determine what his monthly payment needs to be : Professor Brain is going to work for the next 25 years and then retire. At the end of the 25th year he would like to withdraw $80,000 per year from an investment account until the end of the 50th year (26 withdrawals). At the end of the 51st year he ..

Assume the annual return for the lowest turnover portfolio : Assume the annual return for the lowest turnover portfolio is 18?% and the annual return for the highest turnover portfolio is 11?%. If you invest ?$102,000 and have the highest? turnover, how much lower will the value of your portfolio be at the end..

User Account

All Pages