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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?What would be your annualized discount rate % on the purchase of a 182-day Treasury bill for 4790 that pays 4850 at maturity?What is the annualized investment rate % on a Treasury bill that you purchase for 9310 that will mature in 91 days for 9533?
- Calculate the price of a 180-day Treasury bill purchased at a 5% discount rate if the T-bill has a face value of £5,000.Calculate the percentage return on a 1-year Treasury bill with a face value of $10,000if you pay $9,138.01to purchase it and receive its full face value at maturity. The percentage return is ______%. (Round to two decimal places.)Calculate the percentage return on a 1-year Treasury bill with a face value of $10 comma 00010,000 if you pay $9 comma 859.819,859.81 to purchase it and receive its full face value at maturity.
- To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9720. What annual simple interest rate does this earn? (Round your answer to one decimal place.)Which one is the approximate periodic interest rate % on a Treasury bill that you purchase for 4,908 $ that will mature in 270 days for 5,000 $? (Assume one year is 360 days)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?
- If you want to earn an annualized investment rate of 3%, what is the most you can pay for a 91-day Treasury bill that pays 5100 at maturity?You have purchased a $1,000 Face Value, 9-month (270-day) Treasury-bill (T-bill) with a quoted market discount yield equal to 5.25%. What is the annual money market yield for this 270-day T-bill?What is the purchase price of a 50-day T-bill with a maturity value of $1,421 that earns an annual interest rate of 4.446%? ( Assume a 360-day a years)
