What is the price P today of a $80,000 182-day Canadian T-Bill if its quoted yield is
Question:
What is the price P today of a $80,000 182-day Canadian T-Bill if its quoted yield is 10%? which is 76200.42.
Find dP/di , the derivative of the previous result from Problem #4 above, with respect to the quoted yield i. Use this derivative to approximate the change in the price of the T-Bill if the yield were to have decreased by 0.002 (i.e. 0.2%) immediately after the T-Bill was purchased.
For the T-Bill in question 4 above, what value does dPdi approach as one gets closer and closer to the maturity date?
You deposit P dollars into an account that earns a nominal rate of i compounded semiannually. At the same time, you deposit 1.8P dollars into an account that earns simple interest at an annual rate of i. If both deposits earn the same amount of interest in the last 6 months of year 10, what is i?
An initial deposit of $12000 is made into an account now, and a second deposit of $25000 is made into the same account after 15 years. During the first 10 years, the account earns interest quoted at a nominal quarterly discount rate of d %. After 10 years have passed, any money in the account earns a nominal semi-annual interest rate of 6.8%. At the end of 30 years, the total value of the account will be $176092.
What is the value of d (to the nearest 0.1%)?
A deposit of $4,000 earns a continuous force of interest given by 0.014t for the first 5 years (t is time in years), and a constant force of 0.07 thereafter.
What nominal quarterly compounding rate is earned over the first 11 years?
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary