Calculate dollar discount and purchase price on t bill

Assignment Help Corporate Finance

Reference no: EM131316761

Sager Inc. just purchased a 91-day, $1 million T-bill that was selling at a discount of 3.25 percent.

a. Calculate the dollar discount and purchase price on this T-bill.

b. Find the money market yield (MMY) on this T-bill.

c. Find the bond equivalent yield (BEY) on this T-bill.

d. Rework parts (a), (b), and (c) assuming the T-bill was selling at a 3.0 percent discount. What effect does this drop of 25 basis points in the T-bill discount have on its BEY?

Reference no: EM131316761

Questions Cloud

What changes would you still like to make : What changes would you still like to make? What was the course material that suggests that this modification would complement or enhance your communication outcomes?

Determine disbursement products available from wachovia : Determine the disbursement products available from Wachovia. Compare Wachovia's controlled disbursements and sweep accounts to the text defi nition for a ZBA.

Design grammars for the following languages : The set of all strings of 0s and 1s that are palindromes; that is, the string reads the same backward as forward. !

Give a leftmost derivation for the string : Is the grammar ambiguous or unambiguous? Justify your answer.

Calculate dollar discount and purchase price on t bill : Calculate the dollar discount and purchase price on this T-bill.- Find the money market yield (MMY) on this T-bill.-Find the bond equivalent yield (BEY) on this T-bill.

Create a proposal for a themed film festival : Create a 1,050- to 1,400-word proposal for a themed film festival. The theme could be anything from a specific genre, like the Western, to a topic, such as LGBTQ representations, to a specific time period, and everything in between

What effect would an increase in the prime rate : What effect would an increase in the prime rate to 4.75 percent for the entire year have on Matthews' effective borrowing rate (EBR) calculated in part (a)?

Prepare a report recommending job analysis and job design : Your boss has asked you to prepare a report recommending job analysis and job design, recruitment and selection strategies that can be adopted by the company to fulfill its staffing needs in view of overall PM strategies.

How large of a cash balance relative to total assets : How large of a cash balance relative to total assets do these companies have?- How has the cash balance (relative to total assets) changed over the last ten years?

User Account

All Pages