You bought a T-bill a few days ago. Now, you want to sell it. The price quotation
Fantastic news! We've Found the answer you've been seeking!
Question:
You bought a T-bill a few days ago. Now, you want to sell it. The price quotation for this T-Bill is below.
Bid Price Ask Price Days to Maturity
94.26 94.96 110 days
Calculate the simple and compounded yield of this T-bill when you sell it?
Explain briefly the relationship between Bill prices and yields
Expert Answer:
Answer rating: 100% (QA)
Part I Simple Yield 100Bid PriceBid Price 10094269426 609 Annualised Yield 609365110 2021 Compo... View the full answer
Posted Date:
Students also viewed these corporate finance questions
-
The bid and ask yields for a Treasury bill were quoted by a dealer as 5.91% and 5.89%, respectively. Shouldnt the bid yield be less than the ask yield, because the bid yield indicates how much the...
-
The relationship between a bonds yield to maturity and coupon interest rate can be used to predict its pricing level. For each of the bonds listed, state whether the price of the bond will be at a...
-
The graph below represents the relationship between t and v. Plot the vectors that represent the changes you computed in part (c). A tank contains 20 gallons of water when all of a sudden the water...
-
Explain the investigation process As an HR manager, identify the first three steps you recommend the HR team take to begin to investigate this scenario. Explain how the steps you are recommending are...
-
a. Obtain and interpret a point estimate for the mean number of chocolate chips per bag for all bags of Chips Ahoy! cookies. (Note: The sum of the data is 52,986.) b. Construct and interpret a normal...
-
Suppose Ford Motor stock has an expected return of 20% and a volatility of 40%, and Molson Coors Brewing has an expected return of 10% and a volatility of 30%. If the two stocks are uncorrelated, a....
-
Describe the objectives of tort law.
-
What is the present value of a $900 annuity payment over five years if interest rates are 8 percent?
-
Consider the following information. Beginning inventory at retail (base year) Ending inventory at retail $ 120,000 $ 168,000 Beginning cost-to-retail percentage 40% Current-year cost-to-retail...
-
Sam Mc Kenzy is a founder and CEO of McKenzy Restaurants Inc., a regional company. Sam is considering opening several new restaurants. Sally Thorton, the company CFO has been put in charge of the...
-
Super Sleep is a company making mattresses for king-size beds. Mattresses can be shipped directly from either of its plants to retail store customers, or they may be transshipped through the...
-
Why is an objective standard used to evaluate the reasonableness of a defendants conduct? How would using a subjective standard affect these cases?
-
True Or False Defendants in wrongful-death actions are not allowed to raise the defenses they could have raised against the decedent.
-
Why are most personal injury cases handled on a contingency-fee basis?
-
True Or False The purpose of automobile-guest statutes was to discourage guests from suing their host drivers and prevent collusion between drivers and their guests.
-
What is the difference between a wrongful death and a survival action? a. What can be recovered in a survival action? In a wrongful-death action? b. What defenses can be raised in each? c. Can the...
-
2. (10 points) According to the life-cycle hypothesis individuals care about the PDV of their lifetime income in making current consumption decisions. As a result in our short run model, we have...
-
Classify each of the following activities as proper or prohibited under the various consumer statutes you have studied. a. Calling a hospital room to talk to a debtor who is a patient there. b....
-
Organization is viewed as a/an ________ process and a management activity, which is crucial for predicting the consumption of a companys resources. Active Passive Intermediary None of the above
-
A narrow span of control does not aid better communication between the superior and the subordinates. True False
-
The ________ networks are usually temporary in nature. Line-and-staff organization Network organizational Virtual organization Tall organizational
Study smarter with the SolutionInn App