A commercial bill with a face value of P50 000 has a current price of P49291. This bill is trading at a yield of 7.5% which necessarily implies a time to maturity of how many days? (Just give the number)

A commercial bill with a face value of P50 000 has a current price of P49291. This bill is trading at a yield of 7.5% which necessarily implies a time to maturity of how many days? (Just give the number)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What is the required annual rate of return on the cocoa contract ? You plan to hold the contract for…

A: Solution:- Given in Question- Risk Free Return = 4% Risk Premium = 6% Beta = -0.291 A. To Calculate…

Q: Given the following information, what would you expect to be the minimum price at which a 3 month…

A: Storage and Insurance Cost = $0.5 per 100 bushels, per month (Given)For 3 months total Storage and…

Q: A $1000 par floating rate note pays a coupon rate of 180-day LIBOR plus a quoted margin of 1.5%…

A: A floating rate note (FRN) is a bond in which the investor will receive coupons from the issuer at…

Q: An asset currently costs $432. The risk-free rate in the economy is 2.8% per year. What should be…

A: Current price = p = $432 Risk free rate = r = 2.8% Time = t = 8 / 12 year

Q: An asset has a current price of ₱80.00 and it has an exercise price of ₱95 in 6 months. In your…

A: Here, Current Price is ₱80.00 Exercise Price is ₱95 Standard Deviation is 0.45 Reference Rate or…

Q: The current level of the S&P 500 is 2530. The dividend yield of the S&P 500 is 2.5%. The risk free…

A: The question gives the following information:

Q: given S0=€50, at the end of second months, the asset can be €52 or €48. With risk free interest rate…

A: To value American options, the binomial option pricing model employs an iterative technique that…

Q: You enter in a long position in a 6x12 FRA at a LIBOR rate of 3.00% and a nominal value of $10M. (a)…

A: Solution:-The scenario in question involves holding a long position in a Forward Rate Agreement…

Q: Please give me the correction calculation and include all the necessary calculations for the…

A: Understanding Arbitrage OpportunityArbitrage is the practice of taking advantage of price…

Q: Consider a European put with an exercise (strike) price of 5.00 and with 6 months to maturity. The…

A: The price of an European put option can be estimated using the Black-Scholes formula. The formula…

Q: (mark-to-market) You enter a short position in a € future contract with the size of €125,000 today.…

A: Future contracts are contracts done today but settled on the date and rate specified in the contract…

Q: Suppose a trader opens a short position in two rice futures contracts. Each contract is for 5,000…

A: Data given: Short position in two rice futures contracts. Each contract is for 5,000 kilograms.…

Q: One-year T-bills yield 1.00%. Based on future rates, the market expects that one year from now, new…

A: Pure Expectations Theory (PET) is used to compute the future rates because this theory defines that…

Q: (mark-to-market) You enter a long position in a € future contract with the size of €125,000 today.…

A: 1. Given: - Future contract size = €125,000 - Time to expiration = 90 days - US interest rate…

Q: You are trader at Tiger Capital. Todays market (bid-ask) rates for the number of USD per EUR are…

A: Forward rate is the interest rate of the financial transaction that will take place in the future.…

Q: If the quotes for a T-bill with 90 days until maturity are 4.54 bid and 4.49 asked, at what price an…

A: The price of a bond can be determined using various factors such as its face value, coupon rate,…

Q: A K100, 000 Treasury bill currently sells at 95% of its face value and is 65 days from maturity.…

A: To calculate the discount yield, we use the following formula: Discount Yield = (Discount / Face…

Q: What is the price of a Treasury STRIPS with a face value of $100 that matures in 15 years and has a…

A: Formula Price = FV/(1+R)N Where FV - Face value i.e. $100 R - Yield rate i.e. 7.0% N - Period i.e.…

Q: A commercial bill with a face value of $50 000 has a current price of $49,291. This bill is trading…

A: Given information: Face Value : $50,000 Current price : $49,291 Yield rate : 7.5% The number of days…

Q: A) You have the following information about prices today, month=0. 2-month t-bill, interest rate…

A: Given Information : 2 Month t-bill interest rate = 0.02 6 Month t-bill interest rate = 0.025

Q: A given project requires an initial investment of 29800 in order to collect the following cash…

A: The first question is answered for you. Please resubmit specifying the question number you want…

Q: Currently the short term (1 to 12 month) borrowing rate is 3.50% per year and the lending rate over…

A: We have the short term borrowing and lending rate. We need to find a repo rate from the given…

Q: What is the price of a Treasury STRIPS with a face value of $100 that matures in 15 years and has a…

A: The objective of the question is to calculate the price of a Treasury STRIPS (Separate Trading of…

Q: Suppose you work as a broker in an investment company, and there is an expectation that the market…

A: CD are issued at discount to the face value of CD so price of CD is always some value below face…

Q: A commercial bill with a face value of P100 000 has a current price of P97 711. This bill has 95…

A: Yield=[(face value - current price)/current price ]*360/days of maturity

Q: Suppose that you trade a forward contract today that matures after one year. The forward price is…

A: Arbitrage is the strategy of taking advantage of price differences in different markets for the same…

Q: Suppose 6-month Treasury bills are trading at a YTM of 1%, 12-month T-bills are trading at a YTM of…

A: Treasury bills are issued by the government of India considered as the money market instrument used…

Q: Consider a contract that caps the LIBOR interest rate on $10,000 at 8% per annum (with quarterly…

A: The London Interbank Offer Rate, written as LIBOR, is the global reference rate for unsecured…

Q: A commercial bill with a face value of $50 000 has a current price of $49,291. This bill is trading…

A: The formula to calculate YTM is (FV/PV)^(1/t)-1 where FV= Face value Pv= Present value YTM= yield…

Q: An asset has a current price of $80 and it has an expected price of $95 in 6 months. In…

A: Value of a contracted asset prior to maturity-It is the value of the asset contacted to trade in the…

Q: A commercial bill with a face value of P50 000 has a current price of P49291. This bill is trading…

A: Time to maturity means the time in which the bill will be matured and the maturity amount will be…

Q: The LIBOR rate at selected dates are showed in Table 3. Please show your calculations. Discuss your…

A: The fair price of the floating rate note would be as follows. Let us assume the notional amount or…

Q: commercial bill with a face value of P50,000 has a current price of P49,291. This bill is trading at…

A: When the good are selling on credit, we issue a bill of exchange asking for the payment of goods…

Q: You purchase a T-Bill which is selling at a discount of 12 TL. The maturity of this T-Bill is 255…

A: Yield represents the additional amount that a holder received for investing in financial instrument.

Q: A Treasury note has 2 years left to maturity, a $1,000 face value, and a coupon rate of 4.4%, with…

A: Step 1: The calculation of the yield to maturity AB1Face value $1,000.00 2Years23Coupon…

Q: Your company expects to pay GBP 1,500,000 in 180 days. The 180 day forward rate for GBP is $1.80 and…

A: Approach to solving the question:Please see attached photos for detailed solutions. Thank you.…

Q: l. The one year risk-free rate is 6% per annum. The futures price for delivery of one bushel of corn…

A: Spot and futures are related to each other through risk free interest and cost of carrying the…

Q: A commercial bill with a face value of P100,000 has a current price of P97,711. This bill has 95…

A: Yield refers to the earnings generated on an investment over a particular period of time. It is…

Q: The yield on a one-year Treasury security is 4.6900%, and the two-year Treasury security has a…

A: Treasury bonds are those that are perpetually issued by a nation's government and bear interest…

Q: A 330-day T-Bill is currently selling at a discount rate of 3.97%. What will be the price of the…

A: The below expression can be used to calculate the current price of T-bill:

Q: Suppose 6-month Treasury bills are trading at a YTM of 1.1%, 12-month T-bills are trading at a YTM…

A: We are given the 6 month spot rate and 12 month spot rate as 1.1% and 2.2% respectively. The YTM of…

Q: You note the following yield curve in The Wall Street Journal. According to the unbiased…

A: According to Unbiased expectations theory,(1+1r2)2=(1+1r1)∗(1+2f1)where1r2 = 2 years maturity yield…

Q: price the European and American binary calls

Q: One year T-bills yield 2.50%. Based on futures rates, the market expects that one year from now, new…

A: The pure expectation explains the yield curve in terms of the expected short term rates.

Q: A promissory note with a face value of $500,000 has 45 days until maturity. If the relevant yield is…

A: Promissory notes are notes that are written for accomplishment of promise that is made to pay…

Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

A commercial bill with a face value of P50 000 has a current price of P49291. This
bill is trading at a yield of 7.5% which necessarily implies a time to maturity of
how many days? (Just give the number)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

1) You buy a T-bill at 88 TL. The matursity is 180 days (6 months). Par Value is 100 TL. If the expected inflation for the next 6 month is 11, calculate the real rate of return? (ex ante) 2) The central bank policy rate which is 1 week repo rate is 35%. Find the compounded yield of the policy rate? 3) Mortgage Loan 3 500 000 TL Maturity 120 months Monthly Interest Rate %3.4 Monthly Installments? 4) A person puts 200 dollar to a pension fund every month. This is invested in Eurobonds yielding sa annual. How much will be accumulated after 20 years? 5) Find the price of a bill maturity 200 days. simple yield $36. Par value: 100 TL
Today is the 10th January 2023. You want to buy a Floating Rate Note (FRN) that matures on the 10th July 2027 and pays an annual coupon equal to LIBOR. Compute the fair price of the note. Use the data in Table 1. The LIBOR rate at selected dates are showed in Table 3. Please show your calculations. Discuss your result.
Suppose an investor purchases $114,000 of TIPS with a 6.14% coupon rate and 12 years until maturity. How much with the second coupon payment be if the level of CPI adjusts to the levels below? Today 6 months from now 12 months from now 18 months from now 228 246.2 256.1 265.5
The stock price is currently $30. Each month for the next two months it is expected to increase by 8% or reduce by 10%. The risk-free interest rate is 5%. Use a two-step tree to calculate the value of a derivative that pays off [max(30 — St； 0)]2, where St is the stock price in two months? If the derivative is American-style, should it be exercised early?
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
What is the price of an American CALL option that is expected to pay a dividend of $2 in three months with the following parameters? s0 = $40d = $2 in 3 monthsk = $43 r = 10%sigma = 20%T = 0.5 years (required precision 0.01 +/- 0.01)
A Treasury STRIPS is just sold at $600. If its yield to maturity is 9.90 percent, what should be the number of years to maturity? Round the year to two decimal places. Assume the par value is $1,000.
You are purchasing a 19.5 years, zero- coupon bound . The yield to maturity is 6.51percent compound semi- annually and the face value is 1000. What is the current market price
(mark-to-market) You enter a long position in a € future contract with the size of €125,000 today. The futures expire in 90 days. The interest rates are iS = 3.9% and i€ = 3.9%. The current spot rate is $1.38/€. Assume 360 days a year. If the spot rate is $1.43/€ the next day and interest rates remain the same, your profit or loss for this day is S _. (Keep the sign and two decimal places.)
If you put on the futures position from 2 at a price of 0.043 $/peso, and if the peso appreciates from the spot rate of 0.045 $/peso by 15% in the next 6 months, what will be the total value of your position (the payable plus the future) in 6 months (again, this should be a negative number)?
A gilt with a face value of £100 and 2 years to maturity pays a 6% annual coupon. It is quoted at a price of £99.09. What is its yield to maturity (YTM)? Present Value Table Present value of 1 i.e. (1 + r)–n Where r = discount rate n = number of periods until payment Periods Discount rate (r) Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%1 0.990 0.980 0.971 0.962 0.952 0.942 0.933 0.923 0.914 0.9052 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.8263 0.971 0.942 0.914 0.887 0.861 0.837 0.813 0.790 0.768 0.7464 0.961 0.924 0.888 0.853 0.819 0.786 0.754 0.723 0.693 0.6655 0.951 0.888 0.837 0.789 0.747 0.708 0.672 0.636 0.603 0.5736 0.942 0.853 0.789 0.735 0.681 0.630 0.582 0.537 0.495 0.4567 0.933…
A commercial bill with a face value of P50 000 has a current price of P49291. This bill is trading at a yield of 7.5% which necessarily implies a time to maturity of how many days?