Answered: A commercial bill with a face value of…

A commercial bill with a face value of $50 000 has a current price of $49,291. This bill is trading at a yield of 7.5% which necessarily implies a time to maturity of how many days?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

A commercial bill with a face value of $50 000 has a current price of $49,291. This bill is trading at a yield of 7.5% which necessarily implies a time to maturity of how many days?

The correct answer here is 70 days, can you show me the complete solution through excel on how to get it? Thank you so much in advance.

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A commercial bill with a face value of $50 000 has a current price of $49,291. This bill is trading at a yield of 7.5% which necessarily implies a time to maturity of how many days? (Just give the number) The answer here is 70 days, can you show me a complete solution on how to get it? Thank you so much in advance.
A commercial bill with a face value of $100,000 has a current price of $97,711. This bill has 95 days to maturity what is its yield? (answer is in percentage e.g. 15%) Can you please tell me the right formula to get this and why? Also, can you please solve the problem using the formula so I can see how to do it?
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