What is the implied yield to maturity on the one year bond

Assignment Help Business Economics
Reference no: EM13978660

You purchase a 1 year T-bill with a $10,000 face value at a price today of $9,756.0975 (a) What is the implied yield to maturity on the 1 year bond? (b) After 1 year, what is the rate of return of the T-bill?

Reference no: EM13978660

Questions Cloud

Discuss your peers the effect of silent spring on government : Discuss among your peers the effect of Silent Spring on the government, private individuals, and the chemical industry. Consider the following questions in your discussion: Was Carson qualified to characterize the effects of DDT on the environment
Who have had a mammogram during the preceding months : Women age 50-74 years, who have had a mammogram during the preceding 24 months. Exclusion of those women who have undergone bilateral mastectomy
What is the minimum annual payment required : Suppose that you have a $15,000 balance on a car loan. The balance accrues interest annually at a rate of 7% of the total unpaid balance at the end of the year. So the balance in one year depends on the current balance, the interest rate, and the pay..
Assume that federal tax revenue from the state of alaska : The United States purchased Alaska in 1867 for $7,200,000. Assume that federal tax revenue from the state of Alaska (net federal expenditures) is $56,500,000 in 2018 and that tax revenue started in 1868 and has steadily increased by 3% annually since..
What is the implied yield to maturity on the one year bond : You purchase a 1 year T-bill with a $10,000 face value at a price today of $9,756.0975 (a) What is the implied yield to maturity on the 1 year bond? (b) After 1 year, what is the rate of return of the T-bill?
How do you think economics will affect the kinds of music : How do you think economics will affect the kinds of music and programming it receives? What the public knows about important issues and news? How the public gains access to culture
What would be the value of the potential if you move : What value of potential would be reached, assuming the negative plate were defined as zero potential? What would be the value of the potential if you then move 0.50 cm parallel to the plates?
The performance of the retail trade industry : How to organize your paper: First, select a topic and an appropriate title of your paper. In order to do so, start the literature review. Google or other search engines may help you conduct a literature review. Second, specify the objective of you..
How they will effect ability to create healthy communities : Discuss the impact of 21st-century immigration trends and how they will effect the ability to create healthy communities

Reviews

Write a Review

Business Economics Questions & Answers

  Question about opportunity cost

If Robinson Crusoe can, either shoot 5-wild geese or catch 15-fish, on average, for every hour of labour effort. i.e. opportunity cost of shooting one wild goose is three fish.

  Mutual stock fund has grown at a rate

A mutual stock fund has grown at a rate of 16% compounded annually since its beginning. If it is anticipated that it will continue to grow at this rate, how much must be invested every year so that $60,000 will be accumulated at the end of 12 year?

  Depositing money into savings account

John and Peter both want to save some money. John decides to save $1,000 every year in an account that pays 4% interest per year compounded annually. How much will be in each person’s account at the end of 20 years, counting from when John started sa..

  Price elasticity of supply of long grain rice

How do you think production possibilities and storage possibilities influence the price elasticity of supply of long grain rice?

  Is a company violating the optimality rule

According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company. In offering such training programs, is a company violating the optimality rule?

  Determine the tax issue

First determine the tax issue. Then research the issue and determine your conclusion.  Fred Fisher is a licensed scuba diver who lives in Key Largo. He is employed full-time as an engineer. Five years ago he had been employed as a professional diver ..

  Characterization of mercantilisms message

"Mercantalism recommends that a country should limit its exports, so that more of the otherwise-exportable products are instead available for local consumption." Do you agree or disagree with this characterization of mercantilism's message? Explain.

  Compared with lower inflation rates-higher inflation rate

Compared with lower inflation rates, a HIGHER inflation rate will (increase/decrees) the after-tax real interest rate when the government taxes NOMIAL interest income. This tends to (encourage/discourage) saving, thereby (increasing/decreasing) the q..

  Rate of return on reinvested earnings

The discount rate for the stock is 15% and the rate of return on reinvested earnings is also 15%

  Compute the price elasticity of demand for dvd players

Illustrate what additional information is needed for you to be able to compute the price elasticity of demand for DVD players.

  If the price elasticity of demand

If the price elasticity of demand in the United States for American-made luxury cars is 1.9, what is the impact on revenue if the price increases by 10%?

  Have the foreign manufacturers used marketing

Think of some foreign products that are marketed in the United States. Have the foreign manufacturers used marketing that is sensitive to U.S. culture? Provide some specific examples.

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