What is the T-bill coupon equivalent yield

Assignment Help Finance Basics

Reference no: EM132178365

Assignment -

Q1. A recent listing for a Treasury bill in the Wall Street Journal gave an Asked Discount Yield of 2.25%. Its maturity was 120 days.

a. What is the T-bill's coupon (bond) equivalent yield?

b. What price would a bank pay for this T-bill?

c. What is the effective annual yield for the T-bill?

d. If the Bid Discount Yield was 2.40%, what was the dealer's "spread" on the bill (in $)?

Q2. An investor just purchased a 182 day maturity Treasury bill for 98.625.

a. What is the coupon equivalent yield?

b. What is the bank discount yield?

Q3. A Treasury note with a maturity of eight years and a coupon interest rate of 4.50% was quoted at a price of 98. What is this T-note's yield to maturity?

Q4. An IBM zero coupon bond with a maturity in September, 2026, has a price of 53.5 (percent). What is the bond's yield to maturity?

Q5. An Exxon bond (par value 100) has a maturity of 15 years and a coupon interest rate of 6.3%. If you require a yield to maturity of 7% on similar risk bonds, what is the value (price) of this bond?

Q6. A Citigroup zero coupon bond has a maturity of six years and a yield of 7%. Interest rates are expected to increase by 1.25%. Based on duration what price change do you expect for this bond?

Q7. An ATT bond (100 par value) which matures in exactly three years (September, 2021) has a coupon of 6.8%. The price of the bond is 96.8547. Your required rate of return is 8%.

a. What is this bond's modified duration?

b. If you expect yields to decrease by i % (100 basis points), what is the approximate price change expected on this ATT bond?

c. Compute the actual price change.

Reference no: EM132178365

Questions Cloud

Determine the financial health of this company : Determine the three ratios which best help you determine the financial health of this company. Do a trend analysis for the most recent three years

How does ben age affect his decision to get an mba : Ben Bates graduated from college six years ago with a finance undergraduate degree. How does Ben age affect his decision to get an MBA

Explain the scoping and screening procedures : NT 3010 - Environmental Impact Assessment - critical analysis of professional literature pertaining the environment impact of petroleum refineriesand

Find the equation of value relative to the january : On January 1, 2011, Bethany took a $15,000 loan from Silent Bob. Find the equation of value relative to the January 1, 2011

What is the T-bill coupon equivalent yield : FIN A46000 Assignment. A recent listing for Treasury bill in Wall Street Journal gave Asked Discount Yield of 2.25%. What is T-bill coupon equivalent yield

The triple bottom line - what is it and how does it work : The Triple Bottom Line: What Is It and How Does It Work - In this assignment you need to prepare outline and introduction

What are the dividends per share : The firm has corporate tax rate of 37.00%. The firm has 146,000.00 common shares outstanding. If the firm pays a 20% dividend, what are the dividends per share

How the company develops and executes its global vision : Describe how the company develops and executes its global vision? Do you feel the company's global vision is good or lacking in effectiveness

Discussion - marketing myopia : Prepare your analysis 4-5 PowerPoint slides and present it to the class max 4-5 mins. Feel free to reach out if you have any additional questions

User Account

All Pages