Suppose Treasury bills (face value of $10,000) with maturities of 30 days, 90 days, and 180 days
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Suppose Treasury bills (face value of $10,000) with maturities of 30 days, 90 days, and 180 days sell at the respective annualized discounts of 4.25%, 4.35%, and 4.92%. What are the respective money market yields for these T-bills? What are their respective bond equivalent yields?
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30 day Tbill Dollar discount 10000 X 425 X 30 360 3542 Tbill price 10000 3542 996458 MMY 354...View the full answer
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Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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