A 182-day, $110,000 face value treasury bill was issued 88 days ago when yields were 0.75%. If the current rate of return is 1.85 %, what is its purchase price today? For full marks your answer should be rounded to the nearest cent. Price = $ 0.00
Q: If inflation has been running at 4.05% per year and a new car costs $23,700 today, what would it…
A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…
Q: It is November 9th. You are managing a bond portfolio worth $6 million. The duration of the…
A: An interest rate hedge is a financial instrument or strategy used to protect against changes in…
Q: A Company recently invested in a project with 3 years life span. The initial investment was 80,000…
A: IRR stands for Internal Rate of Return, which is a metric used in finance and project evaluation to…
Q: As a result of your findings, the retailer has decided to do an ERM analysis of all its retained…
A: Enterprise risk management (ERM) is a risk assessment strategy in which risks are identified and…
Q: a) Consider two firms L (Levered) & U (Unlevered) which are identical in all respect except for…
A: Please note under Bartleby's Answering Guidelines only the first question can be solved. An…
Q: Broward Manufacturing recently reported the following information: Net income ROA $453,000 8%…
A: Basic Earning Power FormulaBEP=EBITTotal Assets ROE (Return on equity) Formula:ROE= Net…
Q: What is the value today of a money machine that will pay $4,500.00 every six months for 16.00 years?…
A: STEP 1 Given a certain rate of return, or discount rate, the present value of an annuity is the…
Q: The yield to maturity reported in the financial pages for Treasury securities Multiple Choice is…
A: Bond equivalent yield By dividing the difference between the bond's face value and its purchase…
Q: Consider a portfolio of 2 assets. Exposure Recovery Rate A 100000 B 150000 50% 70% If each of the…
A: To find the 99% relative Value at Risk (VaR) of the portfolio, we can use the following formula: VaR…
Q: A.How much money should be deposited each year for14 years if you wish to have $26,800 in the…
A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…
Q: 8. What is not an illustration of the European sovereign debt crisis around 2011? a) Interest rates…
A: European sovereign debt crisis is a debt crises which reflects that the European countries where at…
Q: You buy 300 shares of Suncor Energy for $25 per share and deposit initial margin of 50%. The next…
A: Actual margin Actual Margin is the sum that is to your Account's credit and is labeled as Actual…
Q: Consumption-Savings
A: a) To calculate the annual savings and consumption for Jacob, we can use the formula for…
Q: discuss the relationship between the percentage of a bonds price due to its coupon payments and the…
A: Bonds are debt security that enables borrowers to raise funds from investors to fulfill their…
Q: You bought a stock for $76.81 and sold it after 4 years for $100.37. What is the average compound…
A: Compound annual growth rate (CAGR) is the average return on the investment which is there for more…
Q: Use linear interpolation to estimate the yield to maturity for a bond with a face value of $100, a…
A: Linear Interpolation method Examine whether the bond's face value is less than the price. If this…
Q: You are school supply shopping and see that notebooks are $4.15 for 5 notebooks. How much is it for…
A: Total cost of supply is known. We have to find the per unit cost.
Q: Mr. De Jesus invested P20,000 every quarter over a 12year period. If his money earns an annual rate…
A: Periodic deposit = 20,000 quarterly = 4 months in a year year =12 Total periods = 12*4 =48 months…
Q: 3. A company needs to decide if it will move forward with 2 new products that it is evaluating. The…
A: STEP 1 NPV NPV stands for Net Present Value. According to the NPV rule, all projects should be…
Q: Anna has access to a perfect capital market with interest rate r = 0.15 (i.e. 15%) per period. She…
A: The net present value (NPV) of the private investment opportunity is the expected return from the…
Q: Shinedown Company needs to raise $55 million to start a new project and will raise the money by…
A: Floatation cost refers to the cost which is incurred while issuing new securities, expenses such…
Q: Q5: How much do you need to invest now to receive £4600 after 6 years if the compound interest rate…
A: The present value of investment is generally representing the value of future cash flows at present…
Q: 2. Caterpillar (CAT), a US multinational, wants to borrow 150 million Canadian dollars at a fixed…
A: a) One way to design a swap that will net a bank 40 basis points per annum while making the swap…
Q: An insurance company prefers to invest in high quality bonds with a long maturity date Why may the…
A: Insurance is a financial product that provides protection against loss or damage by transferring the…
Q: What are the major classes of securities sold by the Firm? Explain your answer with example. (Word…
A: Company requires funding for their investment which can be obtained from broadly two sources.…
Q: Ferrell Inc. recently reported net income of $8 million. It has 620,000 shares of common stock,…
A: Current earnings per share = Current net income / Number of shares outstanding Current earnings per…
Q: Problem 7.6. Annuity payments Suppose that a fixed-pa The annuity earns a guaranteed 9 percent…
A: An annuity is a series of equal payments for a fixed period of time. It can be classified as the…
Q: Pacific Packaging's ROE last year was only 2%, but its management has developed a new operating plan…
A: STEP 1 A company's management of the capital that shareholders have put in it is shown by its return…
Q: YOU NOT SEE MY WORDS? MUST USE EXCEL FORMULA! NOT ALGEBRAICALL
A: Present value is the equivalent value today based on the time and interest rate of the future cash…
Q: You are deciding between two mutually exclusive investment projects. Both require the same upfront…
A: IRR and NPV are modern methods of capital budgeting that are often used to evaluate investment…
Q: The annuity would pay her Rs 70,000 until she lives. The insurance con expected that she would live…
A: The present value of the future cash flows from the annuity based on the time and interest rate…
Q: Determine the monthly payment for each of the three options if the terms of each loan are the same.…
A: First, we need to determine the loan amount by using the formula below: Loan Amount = Car value -…
Q: When Dimi was a student, he was inspired by Professor Paepen to buy a bond. He bought a bond which…
A: Duration is a tool used to analyze the effect of interest rate movements on the price of a bond.…
Q: Consumption-Savings Plan Exercise Assume Jacob is 30 years old and has 40 more years to work.…
A: The concept of money's time worth reveals that any sum of money is worth more currently than what it…
Q: Define balance of payments. And explain why it is useful to examine a country’s balance-of-payments…
A: The balance of payments is a record of all economic transactions between a country and the rest of…
Q: Thanks alot I just want to know from where you got the (inventory = 95) Thanks
A: Current assets are those assets which can be easily converted into cash without any problem during…
Q: Penny Cassidy is considering forming her own pool service and supply company, Penny's Pool Service &…
A: Select financials information have been provided. We have to cast them into financial statements.
Q: An Investor uses £7,500 of her money + £2,500 from a loan at 8% to invest in the shares of MLN. A…
A: Investments are goods or assets that are bought to produce income or appreciate in value. The…
Q: 6. 7. 8. Write the equation if you purchase a 6% $1000 coupon bond that pays interest every 3 months…
A: The bond is a debt instrument that companies use to raise capital from investors. It pays interest…
Q: Accrual accounting is accurate in determining profits. Select one: True False
A: Accrual basis accounting recognize the revenue / expenses when transaction occur instead of payment…
Q: Find the compound amount and the amount of interest earned by the following deposit. $7,000 at 7.87%…
A: Continuous compounding refers to the process of calculating interest on an investment in which the…
Q: A firm has a profit margin of 4% and an equity multiplier of 1.9. Its sales are $130 million, and it…
A: Total asset turnover = Sales / Total assets = $130,000,000$78,000,000 = 1.666667
Q: Name one deal on share spot market and one deal on the share derivative market
A: A share market is a marketplace where buyers and sellers can transact on publicly traded shares at…
Q: A $200,000 loan amortized over 15 years at an interest rate of 10% per year requires payments of…
A: Given, Loan Amount = $200,000 Time Period = 15 Years Rate = 10%
Q: The Cricket Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to…
A: a). Stock price is calculated using following equation Stock price, Pn = D0×1+g(n+1)r-g Where, D0 is…
Q: A construction company agreed to lease payments of $573.95 on construction equipment to be made at…
A: STEP 1 An agreement known as a lease specifies the conditions under which one party consents to rent…
Q: Inflation is expected to average 4% for the long term and Mr. Smith earned $74,000 this year, how…
A: The current earnings (PV) is $74,000. The inflation rate (r) is 4%. The years to keep up with…
Q: 3. An entrepreneur has two projects to choose between. Both require an investment of $1 which must…
A: i. The relationship between the R the bank charges and the project chosen by the entrepreneur is…
Q: you for the next 6 years, with your first deposit one month from today. If your savings earn 12.05%…
A: As per the given information: Amount deposited every month = $650Period = 6 yearsInterest rate =…
Q: Nougat Corporation wants to raise $4.9 million via a rights offering. The company currently has…
A: The common stock also known as equity refers to the real owners of the company who has voting rights…
Please show calculations
Step by step
Solved in 2 steps with 1 images
- What is the compound yield on a Treasury bill that costs $98,830 and will be redeemed for $100,000 after 90 days? Assume 365 days in a year. Round your answer to one decimal place. % How much additional return would you have to earn if you had bought $100,000 worth of 90-day commercial paper for $98,566? Assume 365 days in a year. Round your answer to one decimal place. %A 180-day $500,000 banker's acceptance (BA) is currently trading at a discount of 3.75%. You purchase the BA today and sell it 90 days later when the three-month yield is 4.10%. What is your rate of return? Use 360-day to annualize. The following is true, except A The price of the BA today is $490,625 B The price of the BA 90 days from today is $494,875 C Your rate of return is -3.46% D Your rate of return is 3.46%A promissory note with a face value of $500,000 has 45 days until maturity. If the relevant yield is 7% then what is the current price of this promissory note? Can you please give me the solution for this accompanied by an explanation? Thank you so much!
- You would like to purchase a T-bill that has a $20,000 face value and is 309 days from maturity. The current price of the T-bill is $19,300. Calculate the discount yield on this T-bill. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.162))You purchased a 270-day $1,000,000 banker's acceptance (BA) six months ago at a discount rate of 6.75%. You sell it today, with 90 days remaining to maturity, at a discount rate of 5.95%. a) What is your rate of return? Use 360-day to annualize. b) What 90-day discount rate when selling the BA today will yield a rate of return of 10% instead of the one obtained in question (a)? c) Explain why a BA is conisdered an off-balance sheet item?Calculate the percentage return on a 1-year Treasury bill with a face value of $10,000if you pay $9,138.01to purchase it and receive its full face value at maturity. The percentage return is ______%. (Round to two decimal places.)
- A 60-day $100,000 T-bill was bought for $99,500. What rate of return will be realized if the T-bill is held until maturity?You can purchase a 1 million treasury bill that is currently selling on a discount basis at 97 1/2 % of its face value. The T-bill is 140 days from maturity. what is the Discount Yield rate?a If current interest rate is 28%, a Treasury Bill with 91 days to maturity, and a face value of GH¢ 50,000 should have a market value of? o Assuming you bought a 182-day Treasury Bill with a face value GH¢20,000.00 and held it for 45 days. If you want to sell it and interest rate is currently at 25%, at what price will you sell it?
- With an annual inflation rate of 1.45%, how much did an item that costs $8000 now cost 3 years prior? Round your answer to the nearest cent.Assuming you bought a 182-day Treasury Bill with a face value Ghc 20,000.00 and held it for 45days. If you want to sell it and interest rate is currently at 25%, at what price will you sell it?A promissory note with a face value of P500 000 has 45 days until maturity. If the relevant yield is 7% then what is the current price of this promissory note? * Your answer
