What is the bond equivalent yield of a 180- day, $ 1 million face value Treasury bill with a discount rate of 4.5 percent?
Answer to relevant QuestionsYou would like to purchase a T- bill that has a $ 10,000 face value and 270 days to maturity. The current price of the T- bill is $ 9,860. What is the discount rate on this security? What is its bond equivalent yield? Consider a $ 15,000 loan with interest at 12 percent compounded monthly and 24 monthly payments. How much will the loan payment be? Set up an amortization schedule for the first four months, indicating the amount and timing ...An embedded option associated with each of the following instruments potentially alters the rate sensitivity of the underlying instrument. Indicate when the option is typically exercised and how it affects rate sensitivity. ...What is the fundamental weakness of the GAP ratio as compared with GAP as a measure of interest rate risk? Which has a longer Macaulay’s duration: a $ 1 million face value zero coupon bond with a two- year maturity and a yield of 6 percent, or a $ 1 million face value coupon bond with a two- year maturity that pays 6 percent ...
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