The bond equivalent yield and effective annual return

Assignment Help Financial Management
Reference no: EM131328701

A Treasury bill with 88 days to maturity is quoted at 99.540. What is the bank discount yield, the bond equivalent yield, and the effective annual return? (Input all amounts as positive values. Round your answers to 3 decimal places. Omit the "%" sign in your response.)

Discount yield %

Bond equivalent yield %

Effective annual return %

Reference no: EM131328701

Questions Cloud

What communication medium your nonprofit might use : How philanthropy (the act of giving financial or physical assets to charity) and other sources of funding might be used by your nonprofit and What communication medium your nonprofit might use to reach target audiences for Giving Tuesday
What are solution or way for economy to get out of recession : What are some solutions or ways for an economy to get out of a Recession or slow things down if we're growing to fast? Give some examples of items that you normally purchase and have noticed a definite increase or decrease in its price.
What is bond equivalent yield : A U.S. Treasury bill with 93 days to maturity is quoted at a discount yield of 1.65 percent. What is the bond equivalent yield?
Rank the investments based on their npvs : Rank these investments based on their NPVs.- Rank these investments based on their IRRs.- Why do these rankings yield mixed signals?
The bond equivalent yield and effective annual return : A Treasury bill with 88 days to maturity is quoted at 99.540. What is the bank discount yield, the bond equivalent yield, and the effective annual return?
What were the results of the contamination on water supply : Answer the following questions in your paper: What were the results of the contamination on the water supply? Link the impacts to the key components of the hydrologic cycle. What were the results of the contamination on the environment
How much debt is required to implement new capital structure : Capital structure and dividend policy A large travel company owns a resorts and hotels. The CFO wants to change the company's capital structure. The change will mean that debtratio (debt-to-value-ratio) is increased to 50% by a large issuance of new ..
Discuss about the life span division like early childhood : Assign a code name to the individual selected at each division of the life span to protect the identity of the subject. The name will usually reflect a characteristic of the individual as illustrated in names such as Miss Brown Eyes or Giggles.Obs..
Why might one combined google company be more profitable : Why might one combined Google/Groupon company be more profitable than if they remained separate companies? In general, what makes an acquisition successful?

Reviews

Write a Review

Financial Management Questions & Answers

  Market requiered yield to maturity on comparable risk bond

Bond valuation relationships the 15 year, $1,00o par value bonds of Waco industries pay 6% interest annually. the market price of the bond is $855, and the market's required yield to maturity on a comparable risk bond is 9%. what is your yield to mat..

  What is the current share price if the required return

A Treasury bond has a face value of $10,000 and is currently priced at $10,165.33. The bond has a current yield of 6.276 percent. What is the coupon rate on a $10,000 bond? Hi-Tek plans to pay a $6 per share dividend one year from today, and will inc..

  Produce cash inflows-what is the net present value

The Blueberry Company is considering a project which will cost $399 initially. The project will not produce any cash flows for the first 3 years. Starting in year 4, the project will produce cash inflows of $458 a year for 4 years. This project is ri..

  Contribution margin ratio

Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $191,800, how many dollars of revenue must the company generate in order to reach the break-even point?

  Risk capital investment that offers superior rate of return

Fitz is risk-averse and is content with a relatively low but safe return on his investments. Frieda is risk-tolerant and seeks a very high rate of return on her invested savings. Yet both shareholders will applaud allow-risk capital investment that o..

  What factors will influence brads asset allocation

Given Brad's lack of knowledge of investing and his limited time to learn or do research, what might be the best option for Brad to pursue and still get the benefit of the potential growth in the technology sector?

  The opportunities to take on debt are almost limitless

The opportunities to take on debt are almost limitless. Given that it is possible tp purchase almost everything on credit, what factors should people consider when deciding how much debt they can handle? Please explain why you think each factor is im..

  Share by assuming that union has constant growth rate

What is the value of equity? Stock price (or market cap)? Or a sort of book value? Union Pacific Railroad reported net income of $770 million in 1993, after interest expenses of $320 million. Estimate the value of equity at the end of 1993, and the v..

  Quality lumber is planning major expansion program requiring

Quality Lumber is planning a major expansion program requiring $5,000,000 in financing. Quality may sell bonds with an 8% coupon rate or sell 200,000 shares of common stock to get the needed funds. Compute the DFL (Degree of Financial Leverage) under..

  Purchase of diesel power shovel to improve its productivity

The ABC Construction Company is considering the purchase of a diesel power shovel to improve its productivity. The company finances the purchase by borrowing from a local bank with no rite with the compounded interests (annual nominal interest The ha..

  What should current rate be on two year treasury securities

One-year Treasury bills currently earn 3.85 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 4.05 percent. The liquidity premium on 2-year securities is 0.10 percent. If the liquidity theory is correct, what sho..

  New required rate of return

Suppose rRF = 3%, rM = 9%, and rA = 15%. Calculate Stock A's beta. Round your answer to two decimal places. If Stock A's beta were 2.0, then what would be A's new required rate of return? Round your answer to two decimal places. %

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