6. The price of a 270-day commercial paper is $7,937. If the annualized yield is 5.30%, what will the paper pay at maturity? A. $8,358 B. $7,640 C. $7,538 D. $8,246
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6. The price of a 270-day commercial paper is $7,937. If the annualized yield is 5.30%, what will the paper pay at maturity?
A. $8,358
B. $7,640
C. $7,538
D. $8,246
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- Suppose you buy a S10,000 face value T-bill maturing in one month for $9,800, what's your effective annual yield (EAY) for this investment? A. 20% B. 27.43%. OC. 15%. OD. 5.58%A commercial bill with a face value of $100,000 and 270 days to maturity is purchased with a yield to maturity of 4.65 per cent per annum. After the bill has been held for 110 days it is sold at a yield of 4.5 per cent per annum. What rate of return was earned by the original holder of the bill; that is, what is the holding period yield? Show your working.Give typing answer with explanation and conclusion What is the Effective Annual Return on a $10 million commercial paper issue that currently sells at 93.5% percent of its face value and is 135 days from maturity?
- 10. Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non-free trade credit if it pays 140 days after the purchase? (Assume a 365-day year.) а. 13.13% b. 11.89% с. 13.83% d. 17.01% е. 15.76%What is the rate of return (the interest rate) on an investment today of $30,626.24 if the company expects to receive $45,000 in 5 years? а. 9% O b. 8% С. 6% d. 7%Calculate the cap rate using the following information. NOI is $10,000. Acquisition price is $100,000. Mortgage expense is $3,000. Utility expense is $4,000. Selling cost is $12.000. A. 12% B. 7% C. 4% D. 10%
- Yield Calculation i. Assume that newly issued three - month (90 days) T - bills with a par value of $1,000 sells at discount rate of 3%. a) What is the price of this three -month T-bills? b) What is the 90-day holding period return of this T - bill? c) What is the annualized yield of this three-month T - bill? ii. Assume that an investor purchased a three-month commercial paper with a face value of $1,000,000 for $940,000. This investor held the commercial paper for 60 days before he sold it at a price of $980,000. What is the annualized yield of this investment? iii. Assume that Canada is in a strong economic condition, and you expect the economy to continuously grow over the next six months. Given your expectations and your calculation for the yield of the three-month T-bills and the three-month commercial paper (note: annualized yield for the three-month commercial paper if the investor chose to hold it till maturity is different from the one you calculate in part ii ), would you…The 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?A K100, 000 Treasury bill currently sells at 95% of its face value and is 65 days from maturity. Calculate the following for the Treasury bill:a. the discount yield.b. the investment yield.
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