An investor purchased a 91-day, $10,000.00 T-bill on its issue date for $9920.61. After holding it for 51 days, she sold the T-bill for a yield of 2.67%. a) What was the original yield of the T-bill? b) For what price was the T-bill sold? c) What rate of return (per annum) did the investor realize while holding this T-bill? a) The original yield of the T-bill was%. Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)

An investor purchased a 91-day, $10,000.00 T-bill on its issue date for $9920.61. After holding it for 51 days, she sold the T-bill for a yield of 2.67%. a) What was the original yield of the T-bill? b) For what price was the T-bill sold? c) What rate of return (per annum) did the investor realize while holding this T-bill? a) The original yield of the T-bill was%. Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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QUESTION 3a) Atwei Lomo bought a 182 –Day Treasury Bill with a face value of GHS 80,000. Ten(10)to the maturity of the Treasury, she decided to sell it. Interest rate on the Treasury Bill iscurrently 14.1%. At what price will she sell it?b) 52 days ago, Abu Bonsra bought a 270-day Commercial Paper with a face value of GHS90,000. If he wants to sell it now and interest rate is currently at 24.5%, at what price willhe sell it?
a investor purchased a 91 day, $100,000.00 t-bill on its issue date fir $99, 441.89, after holding it for 16 days, she sold the t bill for a yeild of 2.21% what is the original yeild of the t bill? what was the t bill sold for? the investor realized the rate of return was?
(Related to Checkpoint 5.4) (Present-value comparison) You are offered $110,000 today or $400,000 in 14 years. Assuming that you can earn 11 percent on your money, which should you choose? If you are offered $400,000 in 14 years and you can earn 11 percent on your money, what is the present value of $400,000? $92797.9392797.93 (Round to the nearest cent.) Which offer should you choose? (Select the best choice below.) A. Choose $110,000 today because its present value is higher. B. Choose $400,000 in 14 years because its present value is higher.
QUESTION 3 A 180-day $500,000 banker's acceptance (BA) is currently trading at a discount of 3.75%. You purchase the BA today and sell it 90 days later when the three-month yield is 4.10%. What is your rate of return? Use 360-day to annualize. The following is true, except The price of the BA today is $490,625 The price of the BA 90 days from today is $494,875 Your rate of return is -3.46% Your rate of return is 3.46% QUESTION 4 The following Is true for standby letters of credit (SBLCs), except: The bank receives an annual fee for using a SBLC for the life of the bond issue The fee for SLBCs for municipal bonds depends on…
Simple Interest An investor purchased 250,000 USD in 364-day T-bills 315 days before maturity to yield 1.12%. The purchase price was 247,606.69 USD. He sold the T-bills 120 days later to yield 1.47%. What annualized rate of return did the investor realize on the investment? Also, can this be done with a financial calculator?
(Related to Checkpoint 5.4) (Present-value comparison) You are offered $110,000 today or $400,000 in 14 years. Assuming that you can earn 11 percent on your money, which should you choose? If you are offered $400,000 in 14 years and you can earn 11 percent on your money, what is the present value of $400,000? $nothing (Round to the nearest cent.)
Need an accurate answer on this！ Sprint Inc. expects the following: UCFBT=$ 10 million in perpetuity from the end of year 1. Debt= $ 20 million. Rb =5% Tax rate is 50% R0 =10% Debt is fully amortized over 3 years in three equal payments. Find the value of Sprints’ equity today. Question content area bottom Part 1 Sprints Equity today is $ million. (Round to two decimals) Use 99 if the answer is indeterminate
QUESTION 14 You purchase a home priced at 1,750,000 Php. You paid 10% as the down payment and the remaining balance under a bank amortization plan to be paid in 8 years. At an effective quarterly interest rate of 1.5%, How much interest will you pay in the 2nd year Solve on white paper or typed. Not in excel
Question 1 Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest rate. a) What is the implied per annual simple interest rate for her purchasing (expressed as a percentage and rounded to three decimal places)? Select one: a. 0.076 b. 0.032 c. 0.031 d. 0.088 Question 2 Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest rate. b) What is her selling price (rounded to four decimal places)? Select one: a. 98740.2903 b. 98634.0935 c. 98846.7161 d. 99317.7280 Question 3 Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest…
QUESTION 14 You purchase a home priced at 1,750,000 Php. You paid 10% as the down payment and the remaining balance under a bank amortization plan to be paid in 8 years. At an effective quarterly interest rate of 1.5%, How much interest will you pay in the 2nd year Solve on the white paper or typed. Not explain in the excel.
A 4. A borrower purchases a property for $200,000 and pays 20% of tye sale price as a down payment. The owner provides a purchase money mortgage at 6% per annum, interest-only monthly payments with a ballon payment in 60 months. In the 40th month, the borrower is approached to sell the property for $240,000. How much equity does the borrower have and what will his sale proceeds be (without any other closing costs?
! Use Data Given ! bartleby = 3 max questions 7. An investment of P 20000 earned P350 for 180 days, what is the annual rate of interest? 8. Bench loaned P10000 in a bank to be paid after 3 years with an interest of 10% compounded semi-annually and P15000 to be paid after 4.25 years at 8% compounded quarterly. How much must he pay after 7 yrs at an interest rate of 12% compounded monthly to settle everything?

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