What is the implied annual yield

Assignment Help Finance Basics
Reference no: EM13287232

A Treasury bond futures contract has a settlement price of 89'08. What is the implied annual yield? According to the text book the answer is Rd= 7.01% but I dont know how they arrived at that answer.

Reference no: EM13287232

Questions Cloud

Explain the production of fluorine-containing compounds : Carbonyl fluoride, , is an important intermediate used in the production of fluorine-containing compounds. For instance, it is used to make the refrigerant carbon tetrafluoride
What would be the contracts new value : What is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100'16? If interest rates increased by 1%, what would be the contracts new value? Answer according to book is Rd= 5.96% but I dont know how they arriv..
Definition of marketing using-facilitate the exchange : Be able to provide your own definition of marketing using: "Facilitate the exchange" along with "creating, communicating, delivering, value" also include "the offering", and "society at large".
The effectiveness of their pay-for-performance plans : 1. How could an organization measure the effectiveness of their pay-for-performance plans?
What is the implied annual yield : A Treasury bond futures contract has a settlement price of 89'08. What is the implied annual yield? According to the text book the answer is Rd= 7.01% but I dont know how they arrived at that answer.
Consider a class called contact to use in a mobile phone : Consider a class called Contact to use in a mobile phone contact list. Draw a UML diagram for this class with three attributes of your choosing and accessor and mutator methods for each attribute. (use | and --- for the boxes)
List the perceived deficiencies of the four not selected : Which two of the six methods used to evaluate projects, and to decide whether or not they should be accepted, do you prefer as a financial manager? Explain why you decided on these two and not the other four. List the perceived deficiencies of the..
Explain the heat capacity of the calorimeter : The observed temperature increase is 2.64 °C. If the heat capacity of the calorimeter is 32.30 kJ·K^-1, how many nutritional Calories are there per gram of the candy
What are the possible reactions from the field : What are the possible reactions from the field

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the company cash conversion cycle

WalMart's Annual sales 2013 468,651, 2012 446,509; Cost of goods sold 2013 352,297, 2012 334,993 So not sure if I have this right.

  Calculate the theoretical intrinsic value of the call option

Given the following information, calculate the theoretical intrinsic value of the Call option using the Black Scholes Model. IF the market price for the Call option = $11, should the investor buy?

  Prepare journal entry to record the accrual of interest

Kingston Satellites issued $3,600,000 face value, 9 percent, ten year bonds at $3,375,680. This price resulted in an effective-interest rate of 10 percent on the bonds.

  How much would your payments be each month

If you were going to buy your office from Mrs. Beach for $500,000 with 10% down payment, 15 years financing with a 6% interest rate, how much would your payments be each month?

  Calculate future value of the investment

A grandmother want a plan to finance her new grandchild's college education. She has $62,000 to invest. Search the internet & locate a long-range investment CD, Savings Bond, plan, etc, for the grandmother.

  Determine the investment''s net present value

Determine the investment's net present value, the internal rate of return, payback period and the discounted payback period.  All key assumptions should be specified and explained and an interpretation provided of results for each of the investment c..

  Quantitative limitations of financial statements

What are the qualitative and quantitative limitations of financial statements? What is the FASB and what role does that entity play? Have you heard of and do you know the meaning of IFAS and GAAP?

  Important information about cost of financing

Drywall Systems, Inc., is presently in discussions with its investment bankers regarding the issuance of new bonds. Compute the after-tax costs of financing with each of following alternatives.

  Time value of money problems

Time Value of Money Problems ,  Joe, a Carlson School graduate you recently hired, needs $55,000 in 4 years to buy the car of his dreams. If his investments earn 6% interest per year, how much must he invest today?

  How much must the member pay

An HMO pays only 75% of approved charges for its HMO patient members. If a member goes out of the approved network of providers and incurs a charge of $ 1,100, of which $ 650 is approved, how much must the member pay?

  Using the risk adjusted discount rate approach

Using the risk-adjusted discount rate approach, the company's weighted average cost of capital is applied to projects with:

  Main challenges to global financial management

What are the main challenges of global financial management? What is foreign exchange risk management? Is it important for companies going international? Why?

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