Treasury securities to earn little extra income

Assignment Help Financial Management
Reference no: EM131975773

XYZ corporation parks its excess cash in Treasury securities to earn a little extra income. Today, XYZ purchased a $100,000 T-Bill in the secondary market for $99,225.76. The T-Bill will mature in 73 days. What is the bond equivalent yield for this security, assuming XYZ holds it to maturity? Show your answer in decimal form to four decimal places. For example, if your answer was 12.34% then you would enter 0.1234 as the answer.

Reference no: EM131975773

Questions Cloud

What constant amount will you be able to withdraw each year : What constant amount will you be able to withdraw each year if you want the funds to last until you are age 95?
Zero-coupon bond-calculate forward interest rate : Given the 2-year spot rate S2=4% and 5-year spot rate S5=6%, calculate the forward interest rate at year 2 of the three year bond.
Decide to start saving for your retirement : You are 24 years old and decide to start saving for your retirement. How much will you have saved for retirement?
What is your estimate for the dividend that Ryde : What is your estimate for the dividend that Ryde will pay in 4 years (e.g., once they begin paying out half of their earnings as dividends)?
Treasury securities to earn little extra income : XYZ corporation parks its excess cash in Treasury securities to earn a little extra income.
What is the deductible amount of Abraham IRA Contribution : Abraham Ahmad, age 55, is married with 2 dependents. What is Abraham's Taxable Wages? What is the deductible amount of Abraham's IRA Contribution?
What are pros and cons of strategies outlined in the case : Determine a recommended strategy for the bond launch. What are pros and cons of your strategy? What are pros and cons of strategies outlined in the case?
Prepare to begin realizing their home purchasing goal : What financial statements should Rudabeh and Donovan prepare to begin realizing their home purchasing goal?
Pursues niche differentiation strategy : Give an example of a company that pursues a NICHE (FOCUSED) DIFFERENTIATION strategy.

Reviews

Write a Review

Financial Management Questions & Answers

  Problemst co is a closely held corporation incorporated

problemst co. is a closely held corporation incorporated under the laws of the state of delaware with 100 shares of

  What additional financing will be needed to support

Exquisite Fashion Limited expects its sales to increase 20% next year from its current level of $4.7 million. The company has current assets of $660,000, net fixed assets of $1.5 million, and current liabilities of $462,000. The projected total asset..

  Firm managers should select projects whose cash flows

When evaluating a? project, a? firm's managers should select projects whose cash flows

  Assume that the risk-free rate of interest

Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 5% and the market risk premium is 6%. Van Buren currently expects to pay a year-end dividend of $1.70 a share (D1 = $1.70). Van Buren..

  How mergers and acquisitions are conceived and created

Importance of understanding how Mergers and Acquisitions are conceived, created, structured and executed.

  What is the full selling price of globe with markup

The Falling Snow Company is considering production of a lighted world globe that the company would price at a markup of 0.25 above full cost. Management estimates that the variable cost of the globe will be $66 per unit and fixed costs per year will ..

  Forecast that for the next five years dividends will grow

The Amazing Video Co. has just paid an annual dividend of 40 cents. You forecast that for the next five years dividends will grow at the rate of 25% a year over the period. Draw the time line showing the dividends per share of this stock for years 1 ..

  Have is the yield to worst

What was the interest rate on the purchase? What was the yield to call if the company pays the shares at the first rate? Have is the yield to worst (YTW)?

  Determine the annualized cost of the loan

Determine the annualized cost of the loan for each of the following outcomes. Interest is based on 90 days and a 360-day year.

  Determine the time in hours

Determine the time in hours that it will take for the calcium carbonate coating to completely dissolve from the inner surface of the tube.

  Three mutually exclusive projects-explain your reasoning

You face three mutually exclusive projects. Explain your reasoning (no reasoning means no credit).

  Company annual capital budget meeting to present analysis

company’s annual capital budget meeting to present an analysis of the strengths and weaknesses of the following capital budgeting selection methodologies:

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