Calculate the investment rate for this t-bill

Assignment Help Financial Management
Reference no: EM131593098

You are analyzing a U.S. T-Bill that matures in 49 days.  The face value is $1,000 and the current price is $995.68. Calculate the Investment Rate for this T-Bill.

Reference no: EM131593098

Questions Cloud

What is the operating cash flow under the best case scenario : What is the operating cash flow under the best case scenario? what is the project’s best case NPV?
How much growth will occur an initial deposit : At the end of 5th. Year, how much growth will occur an initial deposit of $ 50 assuming the following rates, 3%, 4%, 5%.
Find the balance of the same year using : Find the balance on December 1st of the same year using:
Uncovered interest rate differentials and parity conditions : Answer the following questions concerning covered and uncovered interest rate differentials and parity conditions:
Calculate the investment rate for this t-bill : Calculate the Investment Rate for this T-Bill.
Percentage of stocks that had gain the last quarter : Compute the percentage of stocks that had a gain the last quarter. Find a 95% confidence interval for the percentage of stocks with a gain.
Credit sales as the basis for estimating bad debts expense : Evaluate the following scenarios, assuming both companies use the next credit sales as the basis for estimating bad debts expense:
Calculate the discount rate for this t-bill : Calculate the Discount Rate for this T-Bill.
What is the firm profit margin and current ratio : Refer to the data for Pettijohn Inc. What is the firm's current ratio? Refer to the data for Pettijohn Inc. What is the firm's profit margin?

Reviews

Write a Review

Financial Management Questions & Answers

  Interest received at end of the period is reinvested

You placed $5,139 in a saving account today that earns an annual interest rate of 19.95 percent, compounded semi-annually. How much will you have in this account at the end of 8 years? Assume that all interest received at the end of the period is rei..

  Objective to evaluate the performance in transfer pricing

What is the objective to evaluate the performance in transfer pricing?

  Explain why the short-term project might be higher ranked

explain why the short-term project might be higher ranked under the NPV criterion if the cost of capital is high; whereas, the long-term project might be deemed better if the cost of capital is low.

  Which program allow gnuti citizen to smooth consumption

Which program is likely to better allow Gnuti citizens to smooth consumption? -Which program is likely to cost the Gnuti government less?

  Significant difference in return between both instruments

For the US economy, for the period 1977-2012 calculate the real interest rate using annual 3- month Treasury bills (secondary market) and 30 year Treasury constant maturity. Show in one graph both series. Do you see a significant difference in return..

  Required return exceed foley required return

The risk-free rate of interest is 3.75%. By how much does Beale's required return exceed Foley's required return?

  Negative rating from one of the financial rating agencies

From the e-Activity, evaluate at least two companies’ financial statements that have received a negative rating from one of the financial rating agencies.

  Explain what is the net income of the firm for the year

cost of goods sold, $450,000 in operating expenses (including a depreciation expense of $150,000), with a tax liability equal to 35% of the firm's taxable income. What is the net income of the firm for the year?

  Identified an investment project with cash flows

Wainright Co. has identified an investment project with the following cash flows.

  Financial innovation and mortgage-back securities

Explain the following concepts: financial innovation, mortgage-back securities, asset-price bubble, debt deflation, financial crisis.

  Amount of a possible future contingency

Many firms believe that it is very difficult to estimate the amount of a possible future contingency. Should a contingent liability be reported even when the dollar amount of the loss is not known? Should it be disclosed in the notes to financial sta..

  What is the effective annual return

F.Q Loans Inc. offers "five for four, or I knock on your door." This means you get $4 today and repay $5 when you get your paycheck in 1 week (or else). What is the effective annual return F.Q earns on this lending business? If you were brave enough ..

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