Solution-Compute the quoted yield and the effective rate

Compute the quoted yield and the effective rate

Assignment Help Finance Basics

Reference no: EM133068076

In the following are Treasury bill quotes from the Wall Street Journal (i.e. quoted based on the bank discount yield, r_BD = (FV-P)/FV)*(360/n)). Compute the quoted (ask) yield and the effective (annual) rate for an instrument with a 4-week to maturity in 24 days (i.e. 24 days ahead)? (Assume a 360-day year, if needed)

Days to Mat.	Bid	Asked
24	4.34	4.26
52	4.33	4.29
80	4.34	4.32
108	4.33	4.31
136	4.35	4.33
164	4.36	4.34

Quoted ask yield is 4.33%and the effective annual rate is 4.36%.
Quoted ask yield is 4.28% and the effective annual rate is 4.33%.
Quoted ask yield is 4.33% and the effective annual rate is 4.22%.
Quoted ask yield is 4.22% and the effective annual rate is 4.22%.
None of the above

Reference no: EM133068076

Questions Cloud

Formulate a strategy to cover : Following the analysis in part II above, formulate a strategy to cover any decline in net worth using futures.

Explain all the government retirement income options : Explain all the government retirement income options that will be available to them over the next five years and give them some advice as to what you would sugg

Corporate finance-debt instruments : A zero coupon bond with a face value of 30,000 UF maturing on September 1, 2010 is traded in the market at a rate of UF + 3% per annum.

Determine the overall operating income : The division's contribution margin is $30000 per year. The fixed costs charged to the division total $37000, Determine the overall operating income

Compute the quoted yield and the effective rate : Compute the quoted (ask) yield and the effective (annual) rate for an instrument with a 4-week to maturity in 24 days (i.e. 24 days ahead)?

Calculate the contribution to sales ratio for each product : Annual fixed costs are budgeted at N$4,000,000. Calculate the contribution to sales ratio for each product. Calculate the total budgeted profit

What is the value of a seven-year : What is the value of a seven-year 9.2 percent coupon bond selling to yield 7.6 percent, assuming the coupon payments are made semi-annually and assuming par val

Take out a policy loan equal to the cash value : Ten years ago, John purchased a universal life insurance policy that has a face value of $1,000,000 and a current cash surrender value of $22,000.

Find preferred stocks : Please find the common stock and the preferred stock of a publicly traded company and tell me which of the two securities using the dividend discount model is a

User Account

All Pages

Compute the quoted yield and the effective rate

Reference no: EM133068076

Reference no: EM133068076

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT