Compute the t-bill discount

Assignment Help Financial Management

Reference no: EM131964354

a. Suppose a finance student purchased a three-month T-bill with a $5,000 par value for $4,500 and sold it ninety days later for $4,200. What is the yield?

b. Newly issued three-month T-bills with a par value of $9,000 sold for $8,600. Compute the T-bill discount.

c. Assume that your friend paid $89,000 for a $90,000 T-bill maturing in 120 days. If you hold it until maturity, what is the T-bill yield? What is the T-bill discount?

Please explain every steps

Reference no: EM131964354

Questions Cloud

What is the company weighted average cost of capital : The company pays a tax rate of 30%. What is the company’s weighted average cost of capital (WACC)?

Find internal rate of return of project : Cuba Co. is considering a project that will produce cash inflows of $72,000 a year for three years followed by $60,000 a year for the following four years.

How much does juan need to invest every 6 months to reach : Juan wants to have $45,000 available to make a down payment on a house at the end of 4 years.

Write a 4 pages paper about phyllis schafly : Write a 4 pages paper about Phyllis schafly and her opposition to the equal rights movement, specifically reading 2 excerpts from one of her essays.

Compute the t-bill discount : What is the yield? Compute the T-bill discount.

Prepare a basic solution to a business problem : ITECH1100 Understanding the Digital Revolution - Prepare a basic solution to a business problem and Write basic programming logic

Prepare journal entries to record the redemption : Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2018.

What is the cost to june of living in this house for a year : June Heiress lives in a beautiful house that she inherited from an indulgent aunt, and on which she has no mortgage.

What is pretax cost of debt : DL Trucking has a cost of equity of 15.4 percent and an unlevered cost of capital of 13.2 percent. What is the pretax cost of debt?

User Account

All Pages