What is the price of the bill as a percentage of face value

Assignment Help Financial Management
Reference no: EM131064837

A Treasury bill purchased in December 2015 has 140 days until maturity and a bank discount yield of 1.87 percent. Assume a $100 face value. a. What is the price of the bill as a percentage of face value? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. Omit the "%" sign in your response.) Price % b. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Bond equivalent yield %

Reference no: EM131064837

Questions Cloud

Pricing each of the securities : Determine if the following is true or false by pricing each of the securities.
In a survey of students at a local college : In a survey of students at a local college it was decided to give part-time students twice the chance of selection because of the smaller numbers involved and the diversity of their study patterns.
Firm has a debt issue outstanding : Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 16 years to maturity that is quoted at 105 percent of face value. The issue makes semiannual payments and has an embedded cost of 10 percent annually. Wh..
Calculate the p-value of the observed sample proportion : State an appropriate null hypothesis and alternative hypothesis for her to consider as the framework for a one-proportion z-test. Calculate the p-value of the observed sample proportion
What is the price of the bill as a percentage of face value : A Treasury bill purchased in December 2015 has 140 days until maturity and a bank discount yield of 1.87 percent. Assume a $100 face value. What is the price of the bill as a percentage of face value?
Write an equivalent query in the relational algebra : Write an equivalent query in the relational algebra
Change the health and doctor-vising habits of individuals : HSAs are gaining in popularity as employers and insurers see them as viable options for shifting the cost of care back to patients. Do you believe that HDHP/HSA plans will change the health and doctor-vising habits of individuals? What about people's..
What is the portfolio expected return : Consider the following information about three stocks: State of Probability of Rate of Return if State Occurs Economy State of Economy Stock A Stock B Stock C Boom 0.3 0.2 0.25 0.60 Normal 0.45 0.15 0.11 0.05 Bust 0.25 0.01 -0.15 -0.50 a. What are th..
Why is self-awareness important for being a good manager : Why is self-awareness important for being a good manager? Describe some negative consequences that might result from a manager with low self-awareness.

Reviews

Write a Review

Financial Management Questions & Answers

  Estimate the effect of waiting on the projects risk

NPC is considering either to invest in a project for a new product immediately or 1 year later. If NPC invests in the project today, there will be 75% chance of good market acceptance of the product and 25% chance of bad market acceptance of the prod..

  What will be the value in your account at the end of year

Assume you are to receive a 10-year annuity with annual payments of $1000. The first payment will be received at the end of Year 1, and the last payment will be received at the end of Year 10. You will invest each payment in an account that pays 9 pe..

  Compact fluorescent lamps-make financial sense

Compact fluorescent lamps (CFLs) have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $.46 and lasts for 1,000 hours. If you require a 11 percent return, at what cost per kilow..

  Security has an expected return

Security F has an expected return of 11.50 percent and a standard deviation of 44.50 percent per year. Security G has an expected return of 16.50 percent and a standard deviation of 63.50 percent per year.  What is the expected return on a portfolio ..

  Calculating number of periods

One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per month. You will charge 1.3 percent per month interest on the overdue balance.

  Using the capital asset pricing model

The current risk-free rate of return is 4.20% and the current market risk premium is 6.60%. Fuzzy Button Clothing Company has a beta of 1.56. Using the Capital Asset Pricing Model (CAPM) approach, what is Fuzzy Button’s cost of equity?

  Discuss the culture of the country

Discuss the culture of the country

  Ratio of the macaulay duration to the macaulay convexity

Your company has a liability, which calls for a single payment of 1000 due in ten years, and it funds it with a one-year zero-coupon bond with a price of 200, and a twenty-year zero coupon bond with a price of 800. Current continuously compounded int..

  Several bond issues-what is the after tax cost of debt

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond Coupon Rate Price Quote Maturity Face Value 1 6.5 % 106.36 5 years $ 45,000,000 2 8.0 115.02 8 years 40,000,0..

  Two different bonds currently outstanding

Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $3,000 every six months over the subsequent eight years, and ..

  About the geometric return

Your grandfather invested $1,000 in a stock 47 years ago. Currently the value of his account is $318,000. What is his geometric return over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal plac..

  Potential major corporate investments

The process of selecting among potential major corporate investments is called capital budgeting. The goal of the capital budgeting decisions is to select capital projects that will decrease the value of the firm.

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