What is the effective compound rate of interest

Assignment Help Finance Basics
Reference no: EM13279249

What is the effective, compound rate of interest you earn if you enter into a repurchase agreement in which you buy a Treasury bill that costs $98760 and will be redeemed for $100000 after 90 days? How much additional return would you have to earn if you had bought $100,000 worth of 90-day commercial paper for $98478?

Reference no: EM13279249

Questions Cloud

How many times must he lift the mass : A student ate a Thanksgiving dinner that totaled 3000Cal . He wants to use up all that energy by lifting a 30-kg mass a distance of 1.0 m. How many times must he lift the mass
What is the real rate of return on these bonds : Bonds outstanding that pay a 5% semiannual coupon, have a 5.5% yield-to-maturity, and a face value of $1,000. The current rate of inflation is 4%. What is the real rate of return on these bonds?
How big is the pressure in the related areas : A space of 100 cm3 and one of 300 cm3 seperated by a capillary tube, in which a tap is arranged, connected. How big is the pressure in the related areas
How many moles of hemoglobin are present in a typical adult : A human body contains 6 liters of blood. The hemoglobin content of blood is about 15.5g/100 mL of blood. The approximate hemoglobin molecular weight is 64,500g/mol. How many moles of hemoglobin are present in a typical adult
What is the effective compound rate of interest : What is the effective, compound rate of interest you earn if you enter into a repurchase agreement in which you buy a Treasury bill that costs $98760 and will be redeemed for $100000 after 90 days?
Determine the pv of the nal : Treadmill Trucking has a total tax rate of 20 percent. Should the firm purchase or lease? Determine the PV of both. Find the NAL.
What was the speed of the meteorite : A 72 kg meteorite buries itself 5.0 m into soft mud. The force between the meteorite and the mud is given by , What was the speed of the meteorite
Calculate the load voltage in transformer for supply voltage : calculate the load voltage in a transformer if supply voltage is 240 Volts. The resistance and inductance refered to the high side are as follows: Req is 29.12 ohms, Xjeq is j12.1 ohms, Rc is 1033 ohms and Xm is j1053 ohms.
Explain a human body contains 6 liters of blood : A human body contains 6 liters of blood. The hemoglobin content of blood is about 15.5g/100 mL of blood. The approximate hemoglobin molecular weight is 64,500g/mol. How many moles of hemoglobin are present in a typical adult?

Reviews

Write a Review

Finance Basics Questions & Answers

  Why are liquidity ratios for utility and fast food companies

Based on these ratios, what is your advice? If another student makes different suggestions, challenge them to justify their choices.

  Computing present worth of future payments

Your parents are giving you $500 a month for five years while you attend college to earn both a bachelor's and a master's degree. Provide financial calculator inputs and check answer.

  Determining random sample from normal population

Random sample is attained from normal population with the mean of µ = 80 and standard deviation of σ = 8. Which of the following outcomes is more probable? Describe your answer.

  Eps-pe and mergers

The shareholders of Flannery Company have voted in favor of buyout offer from Stultz Corporation. Information about each firm is given here:

  What is this firm pretax cost of debt

Four years ago, the Morgan Co. issued 15-year, 7.0 percent semiannual coupon bonds at par. Today, the bonds are quoted at 101.6. What is this firm's pretax cost of debt?

  Prepare a financial forecast

Prepare a financial forecast for Joan Roberts.

  Question-business law and management ethics

Why should the definition of law emphasize enforcement? To what three factors do courts look for evidence of implied partnership?

  Calculate the amount of accrued interest on this bond

A $1000 par value bond has a coupon rate of 6 percent. The bond pays interest semiannually. Exactly 41 days have passed since the last coupon payment.

  What will be its dividend payout ratio

If net income next year is $1.8 million and Perkin follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.

  Decisions to maximize stockholders welfare

Suppose you are the president of a large publicly owned company, would you make decisions to maximize stockholders' welfare or your own personal interest?

  Expected returns and betas

Suppose you have been scouring The Wall Street Journal looking for stocks that are "good values" and have calculated the expected returns for five stocks. Assume the risk-free rate is 7% and the market risk premium is 2%.

  Effective annual rate for investment choices

Evaluate the Effective Annual Rate (EAR) for each investment choice. (Suppose that there're 365 days in the year). Please show in Excel.

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