What is the effective annual rate of return of investment

Assignment Help Financial Management

Reference no: EM131989797

You paid $9,700 for a $10,000 par value Treasury bill maturing in 3 months. What is the holding-period return if you hold the treasury bill until maturity? Enter your answer as a decimal, rounded to four decimal places. What is the effective annual rate of return of the investment? Enter your answer as a decimal, rounded to four decimal places.

Reference no: EM131989797

Questions Cloud

Discuss the effects of compounding interest : Discuss the effects of compounding interest. How can you use this knowledge to help structure your financial plan.

The p-e ratio remained unchanged : If this growth rate continues, what would be the stock price in five years if the P/E ratio remained unchanged?

How much should the stock price change : Consider a firm that had been priced using a 9 percent growth rate and an 11 percent required return.How much should the stock price change

Purchased using ranking present worth analysis : Which insulation (if any) should be purchased using a ranking present worth analysis?

What is the effective annual rate of return of investment : What is the effective annual rate of return of the investment?

What is the npv of the project with the option to expand : Determine the NPV of the limited introduction. What is the NPV of the project with the option to expand?

What is its current value : A firm recently paid a $0.70 annual dividend. If the required return for this stock is 13.5 percent, what is its current value?

Equal to the expected yields if interest rates change : For the coming year, what is the expected capital gains yield? Will the actual realized yields be equal to the expected yields if interest rates change?

What rate of return would she have earned for past year : If Janet sold the bond today for $1,086.29, what rate of return would she have earned for the past year?

User Account

All Pages