What is the discount yield-bond equivalent yield

Assignment Help Financial Management

Reference no: EM131065599

What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 96 3/8 percent of its face value and is 60 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))

Discount yield %

Bond equivalent yield %

Effective annual return %

Reference no: EM131065599

Questions Cloud

What is the expected profit at a volume : Assume the following cost and revenue data for Summerlin General Hospital: Fixed costs = $15 million Variable cost per inpatient day = $250 Revenue per inpatient day = $1,000 What is the expected profit at a volume of 25,000 inpatient days?

Calculate her debt payments-to-income ratio : Kim Lee is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $990 per month. Calculate her debt payments-to-income rati..

What is your estimate of intrinsic value per share : The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next 5 years. Its latest EPS was $16, all of which was reinvested in the company. which it will continue to do forever after. D..

Prepare the cash budget : A firm estimates sales of $150,000 in December, $175,000 in January; $125,000 in February, $200,000 in March, $250,000 in April; $180,000 in May; and $200,000 in June. November sales were $125,000. Prepare the cash budget for January through April. W..

What is the discount yield-bond equivalent yield : What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 96 3/8 percent of its face value and is 60 days from maturity?

Was postponing her purchase a good trade-off for dorothy : Dorothy lacks cash to pay for a $1,620 dishwasher. She could buy it from the store on credit by making 12 monthly payments of $140. The total cost would then be $1,680. When she goes back to the store, she finds the dishwasher now costs $1,782.00. It..

How much will you pay for the stock : Alexander Corp. will pay a dividend of $4.30 next year. The company has stated that it will maintain a constant growth rate of 4.75 percent a year forever. If you want a return of 12 percent, how much will you pay for the stock?

What price should be set under marginal cost pricing : Assume a clinical laboratory is considering a new test. Here are the key assumptions: annual fixed direct costs = $20,000, annual overhead allocation = $10,000, variable cost per test = $5, and expected volume = 5,000 tests. What price should be set ..

Cost containment-payer negotiations-joint venture activities : The role of finance in healthcare has increased in importance over time because the finance function must support a multitude of activities, such as cost containment, payer negotiations, and joint venture activities.

User Account

All Pages