What is the price of the bill as a percentage of face value

Assignment Help Financial Management
Reference no: EM13806187

A Treasury bill purchased in December 2015 has 118 days until maturity and a bank discount yield of 2.13 percent. Assume a $100 face value.

a. What is the price of the bill as a percentage of face value? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. Omit the "%" sign in your response.)

Price   %

b. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Bond equivalent yield   %

Reference no: EM13806187

Questions Cloud

What is the stocks current price per share : Tapley Inc. currently has total capital equal to $9 million, has zero debt, is in the 40% federal-plus-state tax bracket, has a net income of $3 million, and pays out 40% of its earnings as dividends. What is the stock's current price per share (befo..
Emphasis on cash flows as opposed to net income : Operating cash flows, rather than accounting profits, are used in project analysis. What is the basis for this emphasis on cash flows as opposed to net income? Explain why sunk costs should not be included in a capital budgeting analysis but opportun..
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 5.41 percent, what is the price and bond equivalent yield? Use Excel to answer this question.
Bond equivalent and discount yields on this investment : The treasurer of a large corporation wants to invest $44 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 3.56 percent; that is, the EAR for this investment is 3.56 per..
What is the price of the bill as a percentage of face value : A Treasury bill purchased in December 2015 has 118 days until maturity and a bank discount yield of 2.13 percent. Assume a $100 face value. What is the price of the bill as a percentage of face value?
Estimates its total variable manufacturing costs : X Company manufactures a single product and estimates its total variable manufacturing costs each month. Each unit of product requires 2.1 pounds of direct material, and the price per pound is $21.00. It takes one hour of direct labor time to manufac..
What is the current price of the stock-dividends will grow : McIver, Inc. currently pays a $2 annual dividend. Investors believe that dividends will grow at 20% next year, 12% for the following year, and 6% annually thereafter. The required return is 10%. What is the current price of the stock?
Statements regarding the efficient market hypothesis : Which of the following statements regarding the efficient market hypothesis (EMH) is incorrect?
Incorrect given the treasury quotes : Which statement is INCORRECT given the following Treasury quotes? The dealer is willing to sell this bond to you for 150.750% of par.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the annual return

A 25-year maturity bond has a 9% coupon rate, paid annually. It sells today for $1,027.42. Calculate the annual return for the 25-year maturity bond over the next five years

  Loan amortization and ear-what will be monthly loan payment

You want to buy a car, and a local bank will lend you $30,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 7% with interest paid monthly. What will be the monthly loan payment?

  Imagine you have created a new service or product using

imagine you have created a new service or product. using relevant entrepreneurship models including management

  What is the value of the current assets

Saunders Corp. has a book net worth of $13,330. Long-term debt is $8,450. Net working capital, other than cash, is $3,230. Fixed assets are $17,630 and current liabilities are $1,730. How much cash does the company have? What is the value of the curr..

  Choosing a streaming media service

Instead of immediately committing to one choice, you can take each service for a "test drive" to see which one you prefer - Price makes a big difference when it comes to choosing a streaming media service. Fortunately, all of the services are priced..

  The make a way foundation has run in the financial crisis

The Make a Way Foundation has run into a financial crisis. Halfway into their fiscal year, the financier has realized that the company has not put enough money aside to cover all of their costs for the children's summer expense project.

  Cash conversion cycle

Primrose Corp has $20 million of sales, $3 million of inventories, $3 million of receivables, and $2 million of payables. Its cost of goods sold is 65% of sales, and it finances working capital with bank loans at an 7% rate. Assume 365 days in year f..

  What is the expected rate of return on the overall portfolio

Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 33%. The T-bill rate is 7%. Stock A 30 % Stock B 35 % Stock C 35 % A client prefers to invest in your portfolio a proportion (y) that maximize..

  How you could make an arbitrage profit

You are working as a corporate treasurer and observe the following two exchange rates. Calculate, using $1 million how you could make an arbitrage (risk-free) profit.

  Determine the feasibility of the capital project

Determine the WACC given the above assumptions and indicate how these might be useful to determine the feasibility of the capital project.

  Spin-off from the standpoints of both company and investors

In January 2015, Yahoo announced a plan to spin off tax-free its nearly $40 billion of holdings in Alibaba. Discuss advantages and disadvantages of a spin-off from the standpoints of both the company and its investors.

  What was the net income for 2013

Does the company use a multiple-step or a single-step format on its income statement and what was the net income for 2013? What was the basic net income (earnings) per common share for 2013?

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