What is the discount yield and the annual rate of interest

Assignment Help Financial Management
Reference no: EM131985113

If a six-month Treasury bill is purchased for $0.9675 on a dollar (i.e., $96,750 for a $100,000 bill), what is the discount yield, the annual rate of interest, the compound rate?

What are the yields if the price falls to $0.94 on a dollar?

a. Discount Yield =

b. Annual Rate =

c. Annual Compound Rate =

d. Discount Yield @ 0.94 =

e. Annual Yield @ 0.94 =

f. Compound @ 0.94 =

Reference no: EM131985113

Questions Cloud

Explain reasons why the stock price could be low : Review the financial performance of Skinner Industries and try to identify some possible reasons why the stock price could be low.
List all the steps used by maximum finding algorithm : List all the steps used by Maximum Finding Algorithm to find the maximum of the list 10, 12, 9, 15, 2, 14.
How large will your last payment be : Your last deposit, which will occur at the end of Year 6, will be for less than $1, 500 if less is needed to reach $10,000. How large will your last payment be?
Behavior in context of psychological moderators : Blogging has positive effects on chronic pain: discuss this behavior in context of psychological moderators: coping
What is the discount yield and the annual rate of interest : If a six-month Treasury bill is purchased for $0.9675 on a dollar (i.e., $96,750 for a $100,000 bill), what is the discount yield, the annual rate of interest.
Explain how functionality and data will be restored : Explain how functionality and data will be restored and what staff should be involved in the post disaster recovery.
What is vicarious trauma : What is vicarious trauma? What problematic issues can arise, as a result of vicarious trauma, on medical or health care professionals?
Find the amount of interest credited on february : Since June 30, 2014 Smith has been making deposits of 100 each into a bank account on the last day of each month.
Rural problems worse than urban problems : Are urban problems worse than rural problems, or are rural problems worse than urban problems?

Reviews

Write a Review

Financial Management Questions & Answers

  Define the bond-treasury-note-par value and coupon rate

Define each of the following, bond, treasury, note, risk free rate of return, par value, coupon rate, coupon payment, period coupon payment,

  What was the geometric average return of stock

A stock had returns of 8%, -6%, 18% and 27% over the past four years. what was the geometric average return of this stock?

  Share a story or a link to an interesting news article

Share a story or a link to an interesting news article that addresses how a particular company or industry is using data to improve its business.

  What is the internal rate of return for project a

Lithium. Inc. is considering two mutually exclusive projects, A and 8. Project A costs $95,000 and is expected to generate $65,000 in year one.

  Future value of multiple annuities-value of retirement plan

Future Value of Multiple Annuities Assume that you contribute $270 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $370 per month for another 20 years. Given a 9.5 percent interest rate, what is the valu..

  Find the value of an american put option

Find the value of an American put option using the binomial option pricing model. The parameters are S = 62, X = 70, r = 0.08, u = 1.10, and d = 0.95.

  Calculate the cross over rate

Calculate the cross over rate. Compute NPV, IRR, and DPB for both projects.

  Consider eight-month european put option

Consider an eight-month European put option on a Treasury bond that currently has 14.25 years to maturity.

  Discuss one portfolio approach for charring strategy

Discuss one portfolio approach for charring strategy and allocating resources in multi-business companies.

  What is the effective interest rate on the libor loan

What is the effective interest rate on the LIBOR loan? What is the dollar cost of the loan?

  Using time value of money concepts

Using time value of money concepts, calculate the Lee’s monetary target in the nearest dollar in the future.

  Think about the future of health care delivery

Directions: Respond to the following questions as you think about the future of health care delivery. 1. List and explain the six main forces that will determine future changes in health care. 2. What might new technology achieve in the delivery of h..

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