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2. Suppose the Investment Yield on a 182-day T bill is 4%. What is its discount-basis yield?
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- Suppose that a three-year FRN pays a six-month Libor plus 4% semi-annually. Currently, the six-month Libor is 2%. The price of the floater is 90 per 100 of par value. What is the discount margin?What is the nominal annual interest rate compounded continu- ously for an annual percentage yield of 3.5%?1) what is the discount yield on a 9-month T-bill sold for RM925, assuming there are 365 days in a year?
- You purchase a T-Bill which is selling at a discount of 12 TL. The maturity of this T-Bill is 255 days. Calculate the simple yield and compounded yield of this T-Bill? (Par value: 100 TL)Suppose that the 9-month and 12-month LIBOR rates are 4% and 4.2%, respectively. What is the value of an FRA where 5% is received and LIBOR is paid on £1 million for the quarterly period? All rates are quarterly compounded and expressed as per annum. Assume that LIBOR is used as the risk-free discount rate. Select one: a. £478.115 b. £422.870 c. £479.062 d. £426.132If you are promised a nominal return of 16%, on a one-year investment, and you expect the rate of inflation to be 2%, what real rate do you expect to earn? Use the Fisher equation, NOT the approximation.