Answered: Suppose you made a 90-day investment…

Suppose you made a 90-day investment with a maturity value of $18,000. Find the present value of the note if money is worth 6.27% at the time you sign the papers.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 4P

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

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Suppose you made a 90-day investment with a maturity value of $18,000. Find the present value of the note if money is worth 6.27% at the time you sign the papers.

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