What is the cost of the t-bill

Reference no: EM13528148

1. T-bill: A brand new 270 day T-bill has an Asked price of 4.12. What is (a) the cost of the T-bill ($10,000 face); (b) the Ask Yld (BYE); (c) the effective interest rate; and, (d) the tax equivalent yield (assume your state tax rate is 8% and your federal tax rate is 28%)?

2. Repos. You execute a three day $75 million (face value) Repo receiving $74,955,172.00 at t=0. What is (a) the associated bank discount rate and (b) the effective interest rate?

3. Revolvers. A two year loan commitment has been authorized for $25,000,000 with an up-front fee of 80 basis points and a commitment fee, on the used portion, of 45 basis points. The rate charged is LIBOR + 175 BP, currently LIBOR is 4.5%. The line of credit requires compensating balances on a "4 + 6" basis for the line and any usage, respectively. Compensating balances on deposit would earn 1% and face a 5% reserve requirement. The expected first year line usage is 60%. What is (a) the bank's expected yield; (b) the borrower's percentage cost; and, (c) suppose the borrower desires no commitment fee, what would the front end fee need to be?

Reference no: EM13528148

Questions Cloud

Discuss a minimum of five event types found in a dhcp log : Discuss a minimum of five event types found in a DHCP log and describe what they refer to and what plan will you follow to assign printers to all the users in the organization?

Tau is a protein that participates in different processes : Tau is a protein that participates in different processes: it is a microtubule associated protein, it protects cells from apoptosis induced by TNF, it is required for the amyloid beta to induce apoptosis, and it is found in the nucleus at differen..

Ras activity responds to extracellular signals : The Ras protein functions as a molecular switch that is set to its on state by other proteins that cause it to bind GTP. A GTPase-activating protein resets the switch to the off state by inducing Ras to hydrolyze its bound GTP to GDP much more rap..

Public service organizations need to measure income : Why would public service organizations need to measure income? What are the possible types of interfund transactions?

What is the cost of the t-bill : 1. T-bill: A brand new 270 day T-bill has an Asked price of 4.12. What is (a) the cost of the T-bill ($10,000 face); (b) the Ask Yld (BYE); (c) the effective interest rate; and, (d) the tax equivalent yield (assume your state tax rate is 8% ..

Logical explanation : Tropomyosin is 40 nm in length. Individual troponin molecules are separated by 40 nm as well. Is this a coincidence or is there a logical explanation?

Determine what is the mass of the box : A box rests on a frozen pond, which serves as a frictionless horizontal surface. what is the mass of the box

How many grams of ticl4 are required for complete reaction : How many grams of TiCl4 are needed for complete reaction with 125L of H2 at 440Celsius and 800 mm Hg pressure. 2TiCl4+H2=2TiCl3+2HCl

Obtain the charge on the outer surface of the conductor : An isolated conductor of arbitrary shape has a net charge of +1.10×10-5 C. Inside the conductor is a cavity within which is a point charge q = +4.40×10-6 C. obtain the charge on the outer surface of the conductor

User Account

All Pages