Wednesday
April 16, 2014

Homework Help: Mathematics

Posted by Joy on Friday, August 23, 2013 at 6:36pm.

A T-bill with face value of $10,000 and 96 days to maturity is selling at a bank discount ask yield of 4.3%. A. What is the price of the bill? (use 360 days a year) B. what is its bond equivalent yield? A. .043 * (96/360) = .011 .011 * (1-.043) = $9,890 B. 1.1% * (365/96) = 4.182% Are these answers correct?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Business Finance - A bond that has a $1,000 par value (face value) and a ...
business - A $1,000,000 face T-bill with 40 days to maturity is priced at $985,...
bonds - YOU WANT TO BUY A TREASURY BILL WHOSE FACE VALUE IS $20000 IN 30 DAYS. ...
math - suppose you are looking to buy a $5000 face value 26 week T-bill. If you ...
math - Suppose you are looking to buy a $5000 face value 26-week T-bill. If you ...
Accounting - $10,000,000 face value, zero coupon bonds due in 20 years, priced ...
finance - A manufacturing company issues a bond with a 100,000 face value and a ...
math - Additional Info - The value of a $20,000 car decreases every, t. The ...
Business Finance - A bond has a $1,000 par value (face value) and a contract or ...
business finance - A bond that has a $1,000 par value (face value) and a ...

Search
Members