A 90-day, $50,000 face value treasury bill was issued when yields were 0.72%. What was its purchase price? For full marks your answer should be rounded to the nearest cent.
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A 90-day, $50,000 face value treasury bill was issued when yields were 0.72%. What was its purchase price?
For full marks your answer should be rounded to the nearest cent.
Not use excel
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- 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 would like to purchase a Treasury bill that has a $16,500 face value and is 62 days from maturity. The current price of the Treasury bill is $16,375. Calculate the discount yield on this Treasury bill. (Use 360 days in a year. Do not round intermediate calculations. Round your percentage answer to 2 decimal places. (e.g., 32.16)) 15 Discount yield % 02:00:54The Berry Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 1.6% per period. Based on the following information, what is the break-even price per unit that should be charged under the new credit policy? Assume that the sales figure under the new policy is 2,900 units and all other values remain the same. (Round the final answer to 2 decimal places. Omit $ sign in your response.) Price per unit Cost per unit Unit sales per month Current Palicy New Policy $ 67 S 35 2, 900 65 $ 35 2, 750 Break-even price
- A 6-month $6000 Treasury bill with discount rate 7.894% was sold in 2009. Find a. the price of the T-bill, and b. the actual interest rate paid by the Treasury. a. The price of the T-bill is $ (Round to the nearest dollar as needed.)Your supervisor has asked you to do the following calculations: (a) A bank bill with 120 days to maturity is issued with a yield of 0.05% pa. Face value is $1,000,000. Calculate the issue price of the bill. (b) The bill in part (a) is sold after 10 days at a yield of 0.15% pa. Calculate the selling price.?Your supervisor has asked you to do the following calculations; (a) A bank bill with 120 days maturity is issued with a yield of 0.05%pa. Face value is $1,000,000.calculate the issue price of bill. (b) The bill in part (a) is sold after 10 days at a yield of 0.15% pa.calculate the selling price.
- The Branson Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.5 percent per period. Current Policy New Policy Price per unit $ 85 $ 87 Cost per unit $ 45 $ 45 Unit sales per month 4,250 ? What is the break-even quantity for the new credit policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)You have estimated spot rates as follows: r₁ = 6.10%, r2 = 6.50%, r3 = 6.80 %, r4 = 7.00 %, r5 = 7.10%. a. What are the discount factors for each date (that is, the present value of $1 paid in year t)? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Year 1 2 3 4 5 Discount Factors b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of: (i) 6.1%, two-year bond; (ii) 6.1%, five- year bond; and (iii) 11.1%, five-year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-i 6.10%, two-year bond b-ii 6.10%, five-year bond b-iii 11.10%, five-year bond Present ValueThe Branson Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.5 percent per period. Price per unit Cost per unit Unit sales per month Current Policy $71 $37 3,050 New Policy $73 $37 ? What is the break-even quantity for the new credit policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Break-even quantity 3,200.00
- Compute the specified quantity. During a month, $5,000 6-month T-bills were sold at a discount rate of only 0.45%. What was its simple annual yield r? HINT [See Example 6.] (Round your answer to four decimal places.) X % r =Simmons Corporation can borrow from its bank at 21 percent to take a cash discount. The terms of the cash discount are 2.5/18, net 55. a. Compute the cost of not taking the cash discount. Note: Use a 360-day year. Do not round intermediate calculations. Input your final answer as a percent rounded to 2 decimal places. Cost of not taking a cash discount b. Should the firm borrow the funds? O No O Yes %A company can issue a 90-day $5 million commercial paper at a rate of 6.55%. It can reduce the rate to 6.35% if it is backed by a standby letter of credit (SBLC). A bank is willing to issue the SBLC for a fee of 10 basis points. a) Should the company obtain an SBLC? Explain why or why not? b) Explain the formula - Expected loss = EAD × PD × LGD