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The asked bank-discount yield of a 181-day T-bill is .75%. If an investor buys such a T-bill in a leap year, what is her effective yield to maturity?
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- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?Suppose the price of a treasury bill with 90 days to maturity and a $1 million face value is $ 980,000. What is the yield on a bank discount basis?Suppose investors can earn a return of 4.5% per 6 months on a Treasury note with 6 months remaining until maturity. The face value of the T-bill is $10,000. What price would you expect a 6-month-maturity Treasury bill to sell for?
- If you pay $8,700 for a 20-year zero coupon bond with a face value of $47,000, what is your annual compound rate of return? Annual compound rate =Suppose investors can earn a return of 2% per 6 months on a Treasury note with 6 months remaining until maturity. What price would you expect a 6-month maturity Treasury bill to sell for?Suppose investors can earn a return of 1.9% per 6 months on a Treasury note with 6 months remaining until maturity. The face value of the T-bill is $10,000. What price would you expect a 6-month maturity Treasury bill to sell for? (Round your answer to 2 decimal places.)
- If the discount rate is 19%, what is the present value of 3500 USD received at the end of each year for 23 years? a) 12450.5 b) 10000.5 c) 17500 d) 25000 e) 18084.5 ================= What is the market value of Beril Gıda A.Ş.'s bond with a nominal value of USD 12,000, maturity of 5 years, with an annual interest payment of 25%, and the desired return rate of 24%? a) 10250 b) 12327 c) 5427 d) 20000 e) 17500 ================== 12000 USD over the 12% interest deposited in the bank at the end of each year, how many USD will it reach at the end of the 15th year? a) 234356.4 b) 375000 c) 634356.5 d) 447356.4 e) 250225.5What is the discount yield, bond equivalent yield, and effective annual return on a $2 million Treasury bill that currently sells at 99.5 percent of its face value and is 95 days from maturity?We observe the following treasury yields on a particular day: one-year 1.50%, two-year 2.25%, and three year 3.25%. If two-year term premium is 0.25%, on that day what did investors expect one-year interest rate to be next year?Group of answer choices a)1.875% b)2.5% c)2.375% d)2.25%
- What is the yield, compounded semi-annually, of a $15,000, 5.5% bond with monthly coupons redeemable in eight years if the bond is bought today for $16,333?The annual payment of a 10-year fixed-income security is $50. The payments are made at the end of each year. The market-required rate of return is 10%. What is the current price of the securities?One-year T-bills yield 1.00%. Based on future rates, the market expects that one year from now, new one year t-bill will yield 2.00%. Based on the Pure Expectations Theory, what is the yield of a 2-year Treasury note?
