What would be the effective rate of interest

Assignment Help Financial Management
Reference no: EM131531551

The Treasury Department auctioned $19 billion in 3-month bills in denominations of $10,000 at a discount rate of 4.350%.

What would be the effective rate of interest? (Use calendar year. Do not round intermediate calculations. Round your answer to the nearest hundredth percent.)

Reference no: EM131531551

Questions Cloud

Determine the ending balance due use the us rule : Determine the ending balance due use the U.S. Rule. Determine the total interest use the U.S. Rule.
What is the loaded characteristic impedance of the bus : A backplane stripline bus measures 15" from end to end. Six equally-spaced inputs circuits are wired to the bus, each of which has a loading capacitance.
Entrepreneurial perspective essay : Prepare a 350- to 700-word essay that defines how entrepreneurship is used as an orientation to business.
Calculate the voltage at the near of the transmission line : For the bus below, calculate the voltage at the near and far ends of the transmission line (i.e., bus) from the time at which a step function is applied.
What would be the effective rate of interest : What would be the effective rate of interest?
Making the hiring decision : As a small business, you actually have flexibility in making decisions about how you can get extra help to perform many of the daily tasks.
What types of testing should be performed : What types of testing should be performed? What types of test data should be used? Identify the specific groups of people who need training on the new system.
Principal balance at the beginning : What was Bill’s principal balance at the beginning of April?
Define the future value : Lynn Ally, owner of a local Subway shop, loaned $61,000 to Pete Hall to help him open a Subway franchise.

Reviews

Write a Review

Financial Management Questions & Answers

  How much would you still owe at the end of the first year

Suppose you borrowed $20,000 at a rate of 8.5% and must repay it in 5 equal instalments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you have made the first payment?

  Use when calculating the npv of average risk project

When a depreciable asset is sold at whatever market price it was able to be sold for, a tax gain or tax loss on disposal is calculated, based on the ________ of the asset at the time of disposal.  In capital budgeting, the ________ is the appropriate..

  Show what happens to the interest rate

If the Fed orchestrates a decrease in the money supply growth rate, ceteris paribus, show what happens to the interest rate, the supply of loanable funds, and the quantity demanded of loanable funds.

  Construct a price-weighted index

You construct a price-weighted index of 78 stocks. At the beginning of the day the index is 9,364.36. During the day, 77 stock prices remain the same, and one stock price increases $4.30. At the end of the day, your index value is 9,417.95. What is t..

  What is the beta of this stock

The common stock of Flavorful Teas has an expected return of 16.35 percent. The return on the market is 13.5 percent and the risk-free rate of return is 4.0 percent. What is the beta of this stock?

  What is the inflation rate

Assume you invest $1,000 today when the consumer price index (CPI) is 140. What is the INFLATION RATE if you have 910.5 in 7 years and the CPI is 170?

  What is the equilibrium rate of return-treasury bond

The real risk-free rate is 3.55%, inflation is expected to be 2.55% this year, and the maturity risk premium is zero. Taking account of the cross-product term, i.e., not ignoring it, what is the equilibrium rate of return on a 1-year Treasury bond?

  What is the value today if its current dividend

You are valuing a toy store with a current growth rate of 18.2% which is expected to decline linearly over the next six years to constant rate of 4.1%. Similar firms have a current required rate of 9.6%. What is the value today if its current dividen..

  What was the firm end-of-year cash balance

You have just been hired as a financial analyst for Basel Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for..

  Paid dividend-what is the price of the stock

Thirsty Cactus Corp. just paid a dividend of $2.40 per share. The dividends are expected to grow at 16 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely. If the required return is 15 percent, what is the p..

  Evaluate generation project with the cash flows

Howell Petroleum, Inc., is trying to evaluate a generation project with the cash flows. what is the NPV of the project? Compute the IRRs for this project.

  What is this gift worth at the present time

Your rich uncle has just given you a high school graduation present of $1,200,000. The present, however, is in the form of a 25-year bond with an annual interest rate of 2.2% compounded annually. The bond says that it will be worth $1,200,000 in 25 y..

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