On 31st March 2016 you saw the following information about bonds.   Name of Security Face Value Maturity Date Coupon Rate Coupon Date(s) Zero Coupon 10,000 31st March 2026 N.A. N.A. t-Bill 1,00,000 24th June 2016 N.A. N.A. 10.71%GOTT 2026 100 31st March 2026 10.71 31st March 10%GOTT 2021 100 31st March 2021 10 31st March & 31st October       1B)   What will be the annualized % yield of the treasury bill of face value which is currently traded at 98,000?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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On 31st March 2016 you saw the following information about bonds.

 

Name of Security

Face Value

Maturity Date

Coupon Rate

Coupon Date(s)

Zero Coupon

10,000

31st March 2026

N.A.

N.A.

t-Bill

1,00,000

24th June 2016

N.A.

N.A.

10.71%GOTT 2026

100

31st March 2026

10.71

31st March

10%GOTT 2021

100

31st March 2021

10

31st March & 31st October

 

 

 

1B)   What will be the annualized % yield of the treasury bill of face value which is currently traded at 98,000?

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