Treasury bill-what is the price and bond equivalent yield

Assignment Help Financial Management
Reference no: EM13808094

A Treasury bill that settles on May 18, 2012, pays $100,000 on August 21, 2012. Assuming a discount rate of 3.87 percent, what is the price and bond equivalent yield? Use Excel to answer this question. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" & "%" signs in your response.)

Price   $  

Bond equivalent yield   %

Reference no: EM13808094

Questions Cloud

Demand for a popular athletic shoe : Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer. The cost per pair is $54.
Prepare a presentation on la union station as a project : Prepare a PowerPoint presentation on Los angeles union station as a sustainable development project.
Problems based on mean and variance distribution : How many ways can five of the 8 different topping bins be arranged in a row on the work counter?
Type of strategy consists of geographical pricing : What type of strategy consists of geographical pricing, price discounts and allowances, promotional pricing, and differentiated pricing?
Treasury bill-what is the price and bond equivalent yield : A Treasury bill that settles on May 18, 2012, pays $100,000 on August 21, 2012. Assuming a discount rate of 3.87 percent, what is the price and bond equivalent yield? Use Excel to answer this question.
What are the pros and cons of doctrine of judicial review : What are the pros and cons of the doctrine of Judicial Review. Overall, has it helped or harmed the nation. Why
Prepare a list of human element characteristics : Prepare a list of human element characteristics and success factors for the IT organization and its projects. The list should be comprised of characteristics that are common to successful IT organizations and the surrounding factors that help contrib..
Improving organizational performance : Improving Organizational Performance
A mortgage bond is secured by a lien on real property : The formula for calculating the present value (PV) of a perpetuity is PV = PP/(1 + i), where PP is the perpetuity payment and i is the discount rate. Common stock represents ownership of the firm. A mortgage bond is secured by a lien on real property..

Reviews

Write a Review

Financial Management Questions & Answers

  Consider a one-step binomial model for a stock

Consider a one-step binomial model for a stock. Now, the stock is worth S0, but will be worth either S0u or S0d at time T where d

  Explain what is the total opportunity cost for a month

The interest rate on marketable securities is 8% per annum. There is a constant rate of cash disbursement and no cash receipts during the month. What is the total opportunity cost for a month based on the firm's current practice?

  Equity outstanding and bonds outstanding

Consider two firms A and B that are identical in all respects except capital structure. Firm A has $100 million in equity outstanding and $40 million in bonds outstanding. Firm B has $140 million in equity outstanding and $0 million in bonds outstand..

  What is the yield to maturity for these bonds

Atlantis Fisheries issues zero coupon bonds on the market at a price of $469 per bond. Each bond has a face value of $1,000 payable at maturity in 10 years. What is the yield to maturity for these bonds?

  Value of stock according to the dividend discount model

Stock A has an expected dividend of $1.30 payable as of two years from now (i.e. it is not expected to pay any dividends over the first two years). After that, dividends are expected to grow at an annual rate of 1% forever. If the discount rate is 5%..

  Considering changing its capital structure

Pennewell Publishing Inc. is a zero growth company. It currently has zero debt and its earnings before interest and taxes are $90,000. PP's current cost of equity is 10%, and its tax rate is 40%. The firm has 10,000 shares of common stock outstanding..

  Deposit a regular amount every three months until he retires

A man is planning to retire in 25 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 10 years. How much must ..

  Describe capital market listing requirements for corporation

Briefly list and describe capital market listing requirements for corporations that who wish to trade on the NYSE?

  Explain machine must be replaced at the end of its life

Either machine must be replaced at the end of its life with an equivalent machine. Which is the better machine for the firm? The discount rate is 6% and the tax rate is zero.

  Financial leverage effects

Firms HL and LL are identical except for their leverage ratios and the interest rates they pay on debt. Each has $16 million in invested capital, has $2.4 million of EBIT, and is in the 40% federal-plus-state tax bracket. Calculate the return on inve..

  What is the price of the stock today

Upper Gullies Corp. just paid a dividend of $2.10 per share. The dividends are expected to grow at 21 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 14 percent, what is the pr..

  Calculated his return on investment

George bought an investment one year ago and just calculated his return on investment. He found that his purchasing power has increased by 15% as a result of his investment. If the inflation over the period was 4%, his _______________.

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