Calculate the purchase price on the t-bill

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Reference no: EM132075938

Question: Sager Inc. just purchased a 91-day, $1 million T-bill that was selling at a discount of 3.35 percent. Assume a 360-day year.

1. Calculate the dollar discount. Round your answer to the nearest cent. m$

2. Calculate the purchase price on this T-bill. Round your answer to the nearest cent. $

3. Find the money market yield (MMY) on this T-bill. Round your answer to three decimal places. %

4. Find the bond equivalent yield (BEY) on this T-bill. Round your answer to three decimal places. %

5. Rework the dollar discount from part (a) assuming the T-bill was selling at a 4.0% discount. Round your answer to the nearest cent. $

6. Rework the purchase price from part (a) assuming the T-bill was selling at a 4.0% discount. Round your answer to the nearest cent. $

7. Rework the money market yield (MMY) from part (b) assuming the T-bill was selling at a 4.0% discount. Round your answer to three decimal places. %

8. Rework the bond equivalent yield (BEY) from part (c) assuming the T-bill was selling at a 4.0% discount. Round your answer to three decimal places. %

Reference no: EM132075938

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