Purchase a security-earn an annual nominal rate

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1) You want to purchase a security that will pay you $1,000 seven years from now. If you want to earn an annual nominal rate of 6.5 percent, how much should you pay for this investment today?

2) You invest $3,600 today at a nominal annual rate of 5.5 percent. This investment will pay one payment five years from now. What will be the amount of that payment?

3) A Treasury bill has 21 days to maturity and a bank discount yield of 1.89 percent. What is the bond equivalent yield?

4) A Treasury bill has a face value of $250,000, an asked yield of 2.02 percent, and matures in 32 days. What is the price of this bill?

5) A $50,000 face value STRIPS is quoted at 94.300. What is the dollar price?

Reference no: EM13798648

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Purchase a security-earn an annual nominal rate : You want to purchase a security that will pay you $1,000 seven years from now. If you want to earn an annual nominal rate of 6.5 percent, how much should you pay for this investment today? You invest $3,600 today at a nominal annual rate of 5.5 perce..

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