INV 1 1c iii. A 180-day US T-bill is quoted with bid and ask bank discount yields of 6.25% and 6.00% respectively. c. Find the effective annual yield based on iii. the ask price of the T-bill.
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INV 1 1c iii.
-
A 180-day US T-bill is quoted with bid and ask bank discount yields of 6.25% and 6.00% respectively.
c. Find the effective annual yield based on
iii. the ask price of the T-bill.
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- INV 1 1c A 180-day US T-bill is quoted with bid and ask bank discount yields of 6.25% and 6.00% respectively. c. Find the effective annual yield based on ii. the bid price of the T-bill.INV 1 1b A 180-day US T-bill is quoted with bid and ask bank discount yields of 6.25% and 6.00% respectively. Find the bid-ask spread of the T-bill.II. Show your solution 1. For each of the following Treasury Bills, calculate the discount basis yield and the investment yield: T-Bill Maturity Price per $100 Discount Yield Investment Yield A 128-day 97.9323 B 91-day 98.7312 C 28-day 96.8931 D 182-day 99.1236 E 91-day 95.7821
- Q1: Calculate the price, and BEY of a treasury bill that matures in 200 days, has a face value of $10,000, and is currently being quoted at a bank discount yield of 2.% Q2:QUESTION THREE A K100, 000 Treasury bill currently sells at 95% of its face value and is 65 days from maturity. Calculate the following for the Treasury bill: the discount yield. the investment yield.A Treasury bill has a bid yield of 3.46 and an ask yield of 3.4. The bill matures in 123 days. Assume a face value of $1,000. a. At what price could you sell the Treasury bill? (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. What is the dollar spread for this bill? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
- 6. The price of a 270-day commercial paper is $7,937. If the annualized yield is 5.30%, what will the paper pay at maturity? A. $8,358 B. $7,640 C. $7,538 D. $8,246A Treasury bill has a bid yield of 2.79 and an ask yield of 2.77. The bill matures in 175 days. Assume a face value of $1,000. (Note: You may need to review material from an earlier chapter for the relevant formula.) a. At what price could you sell the Treasury bill? (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. What is the dollar spread for this bill? (Do not round intermediate calculations. Round your answer to 3 decimal places.)26. Calculate the interest (in $), purchase price (in $), and effective interest rate (as a %) of the Treasury bill (T-bill) purchase. Round effective interest rate to the nearest hundredth of a percent. FaceValue DiscountRate (%) Term(weeks) Interest PurchasePrice EffectiveRate (%) $60,000 4.60 26 $ $ %
- a: What is the bond equivalent yield on a Treasury-bill with a face value of $3,000000, a discount rateof 3% and 40 days until maturity? b: What does VAR(95%) of $32,000 mean? c: Use the following to calculate the effective borrowing cost of commercial paper• Face value = 19,000,000• Discount rate = 0.5%• Dealer Fee = 0.2%• Commitment Fee = 0.17%• Days to maturity = 50which one is correct please confirm? Q20: Which investment would show the highest rate of return: 1) a six month (180/360 days) deposit at a rate of 4.75% or 2) a six month straight discount bill at a discount rate of 4.60% (180/360) "A six month deposit is a true yield instrument, therefore the yield will be 4.75%" a six month straight discount bill at a discount rate of 4.60% cannot be determined both are sameB. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 2.9 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security? Probability Return0.15 -3%0.30 2%0.40 4%0.15 6% The investment's standard deviation is _______ % . round to two decimal places