3. (2 points) For a $10,000 91-day treasury bill, find the price necessary to have a...

Question

Question

business finance

Answer 1

Answer #1

Price of a 91 dat treasuty bill = 10000-(10000491/365)*1.55%) Price of a 91 dat treasuty bill = 10000-38.6438 Price of a 91 d

Answer 2

Similar Homework Help Questions

What is the price of a $10,000 Treasury Bill with 89 days to maturity with a...

What is the price of a $10,000 Treasury Bill with 89 days to maturity with a quoted discount yield of 1.55%? What is the bond equivalent yield of that Treasury Bill?
Suppose that on January 2, 2018, the U.S. Treasury auctioned the following four T-Bills: 28-Day 91-Day...

Suppose that on January 2, 2018, the U.S. Treasury auctioned the following four T-Bills: 28-Day 91-Day 182-Day 270-Day Issue Date 1/2/2018 1/2/2018 1/2/2018 1/2/2018 Maturity Date 1/30/2018 4/3/2018 7/3/2018 9/29/2018 Face Value per $100 100 100 100 100 Price per $100 99.8 99.2 98.3 97.5 Determine the bank discount rate for each T-Bill using formula 10-3 given in the chapter and the DISC function. Determine the bond equivalent yield for each T-Bill using the formulas given in the chapter and...
A three-month (90 day) Treasury bill with a $10,000 face value is quoted at a discount...

A three-month (90 day) Treasury bill with a $10,000 face value is quoted at a discount of 0.60. What is the implied price of the Treasury bill? What is the implied rate of return that an investor can earn over the 90-day period?

i need #4 and 5 3. A Treasury bill has a face value of $10,000, is...

i need #4 and 5 3. A Treasury bill has a face value of $10,000, is selling for $9,800, and matures in 78 days. i. What is its discount rate? (9.231%) ii. What is the bond equivalent yield (BEY) if you purchase the security now? (9.550%) ii, Suppose that you purchase this bill and held it for 60 days and then sell it for S9,954.846154. What is the yield on your investment? (9.612%) iv. What is the effective annual yield...
A 91-day Treasury bill with a face value of $1 million is sold to yield 5.27...

A 91-day Treasury bill with a face value of $1 million is sold to yield 5.27 percent. a. At what price did the T-bill sell if the yield was quoted by the market? (Use 365 days a year. Round the final answer to 2 decimal places.) Price $ b. At what price did the T-bill sell if the yield was an effective annual yield? (Use 365 days a year. Round the final answer to 2 decimal places.) Price ...
A T-bill with face value $10,000 and 91 days to maturity is selling at a bank...

A T-bill with face value $10,000 and 91 days to maturity is selling at a bank discount ask yield of 3.8%. a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of the bill 9,906.17 b. What is its bond equivalent yield? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Bond equivalent yield 3.80 %

QUESTION ONE A 91 days treasury bill with a par value of K100 has been issued...

QUESTION ONE A 91 days treasury bill with a par value of K100 has been issued at a price of K97.55. Required: (a) Calculate the bond equivalent yield of the Treasury bill. (b) If the Treasury bill above was a 182 instrument, would the bond equivalent yield be more than or less than the bond equivalent yield calculated above? A 273 Treasury bill with a par value of K100.00 has a bond equivalent yield of 12.75%, which would be achieved...
If the discount yield on a 30-day Treasury bill is 4%, what is its bond-equivalent yield...

If the discount yield on a 30-day Treasury bill is 4%, what is its bond-equivalent yield (investment rate)?
A 3-month $25,000 treasury bill with a simple annual discount rate of 0.25% was sold in...

A 3-month $25,000 treasury bill with a simple annual discount rate of 0.25% was sold in 2016. Assume 365 days in a year. (a) Find the price of the treasury bill (T-bill). (b) Find the actual interest rate paid by the Treasury. (a) The price of the T-bill was $] (Round to the nearest cent as needed.) A 6-month $20,500 treasury bill with a simple annual discount rate of 0.44% was sold in 2016. Assume 365 days in a year....

3. In March, Fiona Fox, Treasury Manager for the Global Gathering Corporation, and plans on purchasing...

3. In March, Fiona Fox, Treasury Manager for the Global Gathering Corporation, and plans on purchasing $1,000,000 of 91 day T-bills for the company’s short-term portfolio when that amount of cash comes in to the company in May. At this time, the 91 day T-bill discount rate is 1.670%, implying a price of $1,000,000 [1 –(.0167 x 91/360)] = $995,778.61. At this time, on the CME Group website, the May 2018 futures price for 90- day Eurodollar CD, the IMM...