Question: please do this in excel question 7 a. A $17,000 T-bill is currently selling at 98 percent of its face value. The T-bill is 180

please do this in excel

question 7

a. A $17,000 T-bill is currently selling at 98 percent of its face value. The T-bill is 180 days from its maturity. Please calculate its (i) bond equivalent yield, (ii) discount yield, and (iii) EAR.

b. Suppose a bank enters a repurchase agreement in which it agrees to buy fed funds from one of its correspondent banks at a price of $10,000,000 with the promise to sell these funds back at a price of $10,000,291.67 ($10,000,000 plus interest of $291.67) after five days. How do you calculate the yield on this repurchase agreement to the bank?

c. A dealer is quoting a $13,000 face value, 180-day T-bill quoted at 2.75 bid, 2.65 ask. What is your buying and selling prices?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

I need answers to the SpiffyTerm Inc. Case. GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY CASE NUMBER: SM-86 MARCH 2001 SpiffyTerm, Inc.: January 2000 January 1, 2000 was not a party day for the...

FI 4000, Summer 2018PROJECT #2 Due Date: Tue., 7/3/2018 Instructions: This project is individually assigned. You are not allowed to work in groups. Please submit in class a single report that...

Questions 1 to 10 are false statements. Please re-write each statement so that it is true. It may be as simple as one word change or more complex. 3. Money market security prices and yields are more...

I desperately need help with these business mathematics questions! I've provided all information needed for them such as page number and questions number. Any help is wonderful. 9.1 Exercises MyLab...

Please, I need help with the calculations for the following 25 problems in the "final" tab of the workbook before 9pm CST. FINC 340 Quizzes 1 2 Derivatives can be strictly defined as Financial...

Please provide excel spreadsheet detailing how you got to the multiple choice answer. I am trying to get ahead and understand each of the practiceproblems in prep for a exam so it would be very...

Dear Dr Fids, Can you please help these questions? It is about MBS cash flow. R Generating MBS cash flows can be messy so we are going to write some functions in R that allows us to generate the cash...

Hoyt, Inc. has estimated current year sales (in millions) for the next four quarters. Q1 $240Q2 $250 Q3 $205 Q4 $350 ? Sales for the 1st quarter next year are projected to be $230.? Accounts...

What factors should be considered in deciding whether the cost of capital for a foreign affiliateshould be higher, lower, or the same as the cost of capital for a comparable domestic operation?...

spreadsheet assignment problems in the attachment. A 180 Day Treasury Bill is priced at $991,850 (Assume $1,000,000 par value). What is the discount Yield? YTM equivalent (Bond equivalent) yield?...

Thackeray Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $45,000 and $42,000, respectively. The present value of cash...

Linda wants to buy a house with a sales price of $300,000. She doesn't think she can pay more than $16,900 a year on a loan payment. A bank will make her a loan at 3% for 25 years with annual...

Costs that cannot be affected by any future action are called a. differential costs. b. sunk costs. c. inventory costs. d. relevant costs. e. joint costs.

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

has a climate in which individuals are encouraged to learn and to develop their full potential, and people perform beyond their competence by taking initiative and using and developing their...

extends the learning culture to include customers, suppliers and other significant stakeholders where possible by such means as buyersupplier workshops in total quality programmes and customers...

Mental models. This involves an ability to understand and change shared mental models which pervade the organization and prevent change.