For the following treasury bill bought in 2007, find (a) the price of the T-bill, and (b) the actual interest rate paid by the Treasury. Nine-month $21,000 T-bill with discount rate of 3.96% (a) The price of the T-bill is $. (Round to the nearest dollar as needed.)
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- On January 18, 2007, BusinessWeek reported yields on Treasury Bills. Bruce Martin purchased a $10,000 13 weekTreasury bill at $9,881.25. a) What is the interest amount? b) What is the effective rate of interest? (to the nearest hundredth of a percent)a 3 month $4,000 treasury bill with discount rate 8.281 was sold in 2009. a. find the price of the t bill . round to nearest dollar b. what is the actual intrest rate paid by the treasuryIf you purchase $27,000 in U.S. Treasury Bills with a discount rate of 4.2% for a period of 26 weeks, what is the effective interest rate? Round to the nearest hundredth percent. Step 1 The effective interest rate on a U.S. Treasury Bill, or T-Bill, is the actual interest rate on a loan to the government and takes into account the fact that the purchaser does not pay the full amount of the T-Bill. It is calculated using the interest, purchase price, and time. The amount of interest on a T-Bill is calculated as follows where the discount rate is given as a decimal and the time will be a fraction whose numerator is the given amount of time in weeks and denominator is 52 weeks. interest = face value ✕ discount rate ✕ time The rate was given to be 4.2%. As a decimal, we have 4.2% = . Calculate the interest (in $) for a $27,000 T-Bill with a discount of 4.2% for 26 weeks. interest = face value ✕ discount rate ✕ time in weeks 52 weeks = $27,000 ✕ ✕ 26…
- Calculate the price of a 180-day Treasury bill purchased at a 5% discount rate if the T-bill has a face value of £5,000.Honesty Company is investing in 5-year treasury bills with a face value of P500,000 and annual interest rate of 5%.How much is the market value assuming a 360 days in a year?Honesty Company is investing in 91-day treasury bills with a total fair market value of P2,500,000 for a purchase price of P2,475,000.What is the annualized discount rate (round off your answer to two decimal places)?Honesty Company is investing in 182-day treasury bills with a total fair market value of P2,500,000 for a purchase price of P2,475,000.What is the annualized investment rate (round off your answer to two decimal places)
- In October 2008, six-month (182-day) Treasury bills were issued at a discount of 1.42%. What was the annual yield? Assume 365 days in a year. (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)What is the annualized investment rate % on a Treasury bill that you purchase for 9310 that will mature in 91 days for 9533?Suppose the central bank of Oman issued Treasury bill on behalf of the government. The maturity of this bill is 91 days. And the required discount rate on this bill is 8 percent. Calculate the market price or present value of Treasur
- Today is July 1 and Barow Company will need a fixed interest rate loan of P1,200,000 for 6 months starting on October 1. The bank quotes an FRA rate of 8% for the loan. If the actual rate on October 1 is 10%, how much interest in pesos, should Barow pay the bank (actual cash outflow)?Below you see yields on T-bills from March 15, 2022 with maturities of 4, 8, 13, 26 and 52 weeks. Using the Bank Discount rate method, compute the price you would have to pay on all these T-bills that you intend to hold with the given maturities. Is there a relationship between prices and yields in this case and does this relationship surprise you? Date Bank Discount 4 weeks Bank Discount 8 weeks Bank Discount 13 weeks Bank Discount 26 weeks Bank Discount 52 weeks 3/15/2022 0.21% 0.29% 0.46% 0.84% 1.19%Today is July 1 and Hilda Company will need a fixed interest rate loan of P1,200,000 for 6 months starting on October 1. The bank quotes an FRA rate of 8% for the loan. If the actual rate on October 1 is 10%, how much interest in pesos, should Hilda Company pay the bank (actual cash outflow)?