[Present Value] You purchase six-month UK Treasury bills on the secondary market with a quoted yield per annum of 0.75 per cent and maturity value of £10,000. The bills have 60 days to maturity. How much would you pay? Use the actual/360-day count convention.
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[Present Value] You purchase six-month UK Treasury bills on the secondary market with a quoted yield per annum of 0.75 per cent and maturity value of £10,000. The bills have 60 days to maturity. How much would you pay? Use the actual/360-day count convention.
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- 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:a. the discount yield.b. the investment yield.What is the price of a U.S. Treasury bill with 36 days to maturity quoted at a discount yield of 7.76 percent? Assume a $500,000 face value.A 3 months (91day) UK treasury bill with a face value of GBP 50 000 000 is quoted at a yield of 4.25%. How much is the bill worth?
- Your firm has just issued five-year floating-rate notes denominated in U.S. dollars and indexed to six-month CME Term SOFR plus 0.70 percent. What is the amount of the first coupon payment your firm will pay per U.S. $1,000 of face value, if six-month CME Term SOFR is currently 8.8 percent? Note: Round your answer to 2 decimal places.Your firm has just issued five-year floating-rate notes (FRNs) indexed to six-month U.S. dollar LIBOR plus 1 4 percent. What is the amount of the third coupon payment your firm will pay per U.S. $1,000 of face value, if six-month LIBOR is currently 8 percent and is expected to increase by 0.75% p.a.?Suppose that the U.S. interest rate on one year Treasury notes was 4.5%. We will use this as the annual interest rate in the U.S. And suppose that the interest rate on the one-year German Treasury note was 4.1%. The spot rate is 1.0162 EUR/USD.. And the 3-month forward rate is 1.0188 Eur/USD. Is there an opportunity for covered interest arbitrage? If so, what would be the total profit if we borrowed $20 million for 3 months? A. YES- $27,395.21 would be the profit B. YES- $29,385.41 would be the profit C. YES- $31,695.53 would be the profit D. YES- $33,875.42 would be the profit E. NO- there is no opportunity for a profit
- You can purchase a 1 million treasury bill that is currently selling on a discount basis at 97 1/2 % of its face value. The T-bill is 140 days from maturity. what is the Discount Yield rate?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.)The promissory note with a face value of 500,000 has 45 days until maturity. If the relevant yield is 7% then what is the current price of this promissory note?
- ABC International can borrow $4,000,000 at SOFR plus a lending margin of 0.65 percent per annum on a three-month rollover basis from Barclays in London. Three month SOFR is currently 5.5 percent. Suppose that over the second three-month interval SOFR falls to 5.0 percent. How much will ABC pay in interest to Barclays over the six-month period for the Eurodollar loan? $50,000 $100,000 $118,000 $120,000Bank A expects the New Zealand dollar (NZ$) is going to appreciate in the next five days from $0.48 to $0.50, and the following annual interest rates are: Currency Lending Rate Borrowing Rate Dollars 7.10% 7.50% New Zealand dollar (NZ$) 6.80% 7.25% Bank A has the capacity to borrow either NZ$10 million or $5 million. If the bank's expectation is correct, the dollar profit can be generated over the five-day period is ___________. A. $134,862 B. $491,225 C. $503,320 D. $208,044Suppose that you borrow $60,000 at 9% compounded monthly over five years. Knowing that the 9% represents the market interest rate, you compute the monthly payment in actual dollars as $1245.51. If the average monthly general inflation rate is expected to be 0.25%, determine the equivalent equal monthly payment series in constant dollars.(a) $1159(b) $1375(c) $1405(d) $1415
