1 A ten year US treasury note with a face value of $10,000 is selling on the market for $7,210.75. It has seven (7) years to maturity. Calculate the note's yield to maturity. (no coupon payments) a. b. C. d. 5.770% 5.250% 4.780% 3.620%
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- Assuming a 360-day year, when a $9,300, 90-day, 6% interest-bearing note payable matures, total payment will be Round your answer to the nearest whole dollar. a.$9,440 b.$9,858 c.$558 d.$140QUESTION 16 A Bank lends a Nesta company. R500 000 for one year at 6.48% and requires a compensating balance of 10% of the face value of the loan. The effective annual interest rate associated with the loan is ... 7.00%. 7.20%. 8.00%. 8.90%.es A bank has issued a six-month, $2.9 million negotiable CD with a 0.45 percent quoted annual interest rate (ico, sp) a. Calculate the bond equivalent yield and the EAR on the CD. b. How much will the negotiable CD holder receive at maturity? c. Immediately after the CD is issued, the secondary market price on the $3 million CD falls to $2.899,000. Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $2.9 million face value CD Complete this question by entering your answers in the tabs below. Required A Required B Required C Immediately after the CD is issued, the secondary market price on the $3 million CD falls to $2,899,000. Calculate the new i secondary market quoted yield, the bond equivalent yield, and the EAR on the $2.9 million face value CD. (Use 365 days in a year. Do not round intermediate calculations. Round your percentage answers to 4 decimal places. (e.g., 32.1616)). Bond equivalent yield Secondary market quoted yield i EAR <…
- 1. A bank deposit of P10, 000 has a real value of P12,136.30 after 3 years. What is its actual amount in the bank on that year if inflation rate is 5% pa ? Select the correct response: O P11,680.78 O P11,869.21 O P10,731.67 O P12, 316.30 O P14,049.28Problem 9-24 Treasury Bills (LO1, CFA1) A Treasury bill that settles on May 18, 2022, pays $100,000 on August 21, 2022. Assuming a discount rate of 3.32 percent, what are the price and bond equivalent yield? Use Excel to answer this question. Note: Round your price answer to 2 decimal places. Enter your yield answer as a percent rounded to 3 decimal places. Answer is complete but not entirely correct. $ 99,147.64 1.665 Price Bond equivalent yield %QUESTION 1 a. NewBank started its first day of operations with ¢ó million in capital. ¢100 million in checkable deposits is received. The bank issues a C25 million commercial loan and another ¢25 million in mortgages, with the following terms: Mortgages: 100 standard 30-year, fixed- rate with a nominal annual rate of 5.25% each for ¢250,000. Commercial loan: 3-year lban, simple interest paid monthly at 0.75%/month. If required reserves are 8%, what does the bank balance sheets look like? Ignore any ban koss reserves. b. How do the concepts of adverse selection and moral hazard explain the credit risk management principles that banks adopt?
- 1 year 0.38% Source: U.S. Department of the Treasury. Date 03/05/2010 2 year 0.9% 3 year 1.47% Assuming that the liquidity premium theory is correct, on March 5, 2010, what did investors expect the interest rate to be on the one-year Treasury bill two years from that date if the term premium on a two-year Treasury note was 0.01% and the term premium on a three-year Treasury note was 0.05%? The expected interest rate is%. (Round your response to two decimal places.)You have purchased a U.S. Treasury bond for $3,000. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $5,000. What interest rate will you earn on this bond? 3.82% 4.25% 4.72% 5.24% 5.77%14- Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $24,995,000, with the promise to buy them back at a price of $25,000,000. (LG 5-2) a. Calculate the yield on the repo if it has a 7-day maturity. b. Calculate the yield on the repo if it has a 21-day maturity.
- Problem 28 Daayata Department Store wishes to discount two notes receivable arising from the sale of merchandise in order to meet some maturing obligations. Both notes have a face amount of P50,000 each and are due in one year. Note A is a non-interest bearing note while Note B is to be paid with an interest of 12%. The bank rate in discounting the notes is 12%. Assuming that the notes were discounted ten months prior to maturity, the total proceeds from both notes discounted is:Problem 11.2 A bank sells a "three against six" $3,000,000 FRA for a three-month period beginning three months from today and ending six months from today. The purpose of the FRA is to cover the interest rate risk caused by the maturity mismatch from having made a three-month Eurodollar loan and having accepted a six-month Eurodollar deposit. The agreement rate with the buyer is 5.56 percent. There are actually 92 days in the three-month FRA period. Assume that three months from today the settlement rate is 4.905 percent. Determine how much the FRA is worth and who pays who-the buyer pays the seller or the seller pays the buyer. (Do not round intermediate calculations. Round your answer to 2 decimal places.) the absolute value of the FRA11.2 Amount due at maturity: 2,900 Discount rate: 6 ¼ Time: 180 days Maturity Value (MV) = 2900 Discount Rate (r)=6 1/4 Time (n) = 180 days What is the Bank Discount and Proceeds
