A commercial bill with a face value of $100,000 has 105 days to maturity is bought...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A commercial bill with a face value of $100,000 has 105 days to maturity is bought by an investor for $98, 888 and sold with 24 days remaining to maturity for $99, 327. Assume 365 days in a year, and please round your answer to the second decimal place. (a) What is the yield the bill was purchased for? % (Round the percentage to 2 decimal places) (b) What was the investor's holding period yield? % (Round the percentage to 2 decimal places) A commercial bill with a face value of $100,000 has 105 days to maturity is bought by an investor for $98, 888 and sold with 24 days remaining to maturity for $99, 327. Assume 365 days in a year, and please round your answer to the second decimal place. (a) What is the yield the bill was purchased for? % (Round the percentage to 2 decimal places) (b) What was the investor's holding period yield? % (Round the percentage to 2 decimal places)
Expert Answer:
Answer rating: 100% (QA)
a The yield that the bill was purchased for can be calculated using the following formula Yield Face ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
Posted Date:
Students also viewed these finance questions
-
What price per $100,000of face value would a fund manager be prepared to pay to purchase 30-day Treasury notes if the current yield on these instruments was 3% per annum?Show your working A...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
For 32 hours of work, you are paid $241.60. How much would you receive for 37 hours?
-
You start working at the age of 20 and you plan to deposit $5000 in savings account every year for next 45 years a) At the end of this time how much money will you have if the interest rate is 5% b)...
-
According to its original plan, Topeka Consulting Services Company plans to charge its customers for service at $120 per hour. The company president expects consulting services provided to customers...
-
How does the existence of classic and integrated corporate tax systems affect the financing decisions of multinational corporations?
-
A young engineer is asked to design a thermal protection barrier for a sensitive electronic device that might be exposed to irradiation from a high-powered infrared laser. Having learned as a student...
-
Parkculate makes Bleft in solution during a Fittering by the equation. Process is ground where n is the PCX) = 800 number amants of filtering steps. Find the Text Forn = 16 and n=5. CRans to the SA...
-
Angela Green, an investment manager at Horizon Investments, intends to hire a new investment analyst. After conducting initial interviews, Green has narrowed the pool to three candidates. She plans...
-
You have been given the following information about the production of Susan Co, and are asked to provide the factory manager with information for a meeting with the vice president of operations....
-
In this Critical Analysis, evaluate promotional posts by the influencer on the next page, Elizabeth Gray (@thegraytergood). Use the same evaluation points that you'll be using in Assignment 1: 1....
-
Kansas Enterprises purchased equipment for $ 8 0 , 0 0 0 on January 1 , 2 0 2 4 . The equipment is expected to have a five - year service life, with a residual value of $ 8 , 5 5 0 at the end of five...
-
8. Three point-like charges are placed at the corners of an equilateral triangle as shown in the figure. Each side of the triangle has a length of 22.0 cm, and the point (A) is located half way...
-
reproduced here from your text (about page 514, Section 15.2.3) shows the market for federal funds when the economy is away from the "flat portion" of the D curve. Notice that the supply of reserves...
-
es c. His $535,500 of taxable income includes $50,000 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $570,000. Income tax Net investment income tax Total...
-
Solve each Blank and Draw : Assume the monetary benefits of an information system are \( \$ 50,000 \) over the duration of the system's life. One-time development costs were \( \$ 80,000 \), and...
-
Assume a simple Keynesian depression economy with a multiplier of 4 and an initial equilibrium income of $3,000. Saving and investment equal $400, and assume full employment income is $4,000. a. What...
-
Why may the separate- entity assumption be artificial for a small corporation with a single shareholder?
-
Franco Ltd. purchased $ 400,000 of Gentron Company 5% bonds. The bonds pay semi- annual interest each 30 June and 31 December. The market interest rate was 6% on the date of purchase. The bonds...
-
What is the difference between a biological asset, agricultural produce, and an inventory item?
-
____________ is the ability to control anothers behavior because of the possession of knowledge, experience, or judgment that the other person does not have but needs. (a) Coercive power (b) Expert...
-
The pattern of authority, influence, and acceptable managerial behavior established at the top of the organization is called ______________. (a) organizational governance (b) agency linkage (c) power...
-
The process by which managers help others to acquire and use the power needed to make decisions affecting themselves and their work is called ______________. (a) politics (b) managerial philosophy...
Study smarter with the SolutionInn App