A T-bill quote sheet has 60 day T-bill quotes with a 4.38 bid and a 4.26 ask. If the bill has a $13,200 face value an investor could buy this bill forMultiple Choice$13,170.54$13,106.28$13,110.54$13,606.28

A t-bill quote sheet has 60 day t-bill quotes with a 4.38 bid and a 4.26 ask. if the bill has a…

Answered: A T-bill quote sheet has 60 day T-bill…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Can you please help me with this? A commercial bill with a face value of $50 000 has a current price of $49,291. 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) What would be the most certain formula to be used to solve this problem and why is it that formula? Also, are commercial bills subject to 360-day interest payment? How can the formula be used to solve the problem?
A motor cycle tag price is 75,000 cash for 60 days. A buyer wants to pay outright cash on the assumption that money is worth 12% simple interest. Find the cash price today.
You buy 6 call options with a contract size of AUD 30,000. They have a USD/AUD strike price of 0.57 and a premium of 7.86 (USD/AUD). You hold these options for 1 month and then sell them for 6.8 (USD/AUD). The brokerage fee on each contract is payable on both entry and exit and is USD 12.21. What is the net profit on this transaction in USD? Oa-190,946.52 Ob. 31,824.42 ⒸC 190,800.00 Od. -190,873.26 Oe. -55,800.00
A 2.50% was issued at par, which you now purchase at 2.35%. How much would you expect to pay?
A company has offered you two different payment plans for purchasing a product, • Option A. 15% down payment (of the total price) and 10 annual payments of $1,200.• Option B. No down payment and 12 annual payments of $ 1,500.Treat the down payment as occurring at Year 0. Assume an interest rate of 8% per year. a. What is the down payment of Option A?b. What is the price paid for the product under Option A?c. What is the price paid for the product under Option B?d. Which payment option should be selected, A or B?e. Briefly explain why someone might choose the option that has the larger sale price.
Cc. 177.
You buy 6 call options with a contract size of AUD 30,000. They have a USD/AUD strike price of 0.57 and a premium of 7.86 (USD/AUD). You hold these options for 1 month and then sell them for 6.8 (USD/AUD). The brokerage fee on each contract is payable on both entry and exit and is USD 12.21. What is the net profit on this transaction in USD? O a. -190,946.52 Ob. -31,824.42 Oc. -190,800.00 O d. -190,873.26 Oe. -55,800.00 You buy 6 call options with a contract size of AUD 30,000. They have a USD/AUD strike price of 0.57 and a premium of 7.86 (USD/AUD). You hold these options for 1 month and then sell them for 6.8 (USD/AUD). The brokerage fee on each contract is payable on both entry and exit and is USD 12.21. What is the net profit on this transaction in USD? O a -190,946.52 Ob 31,824.42 O-190,800.00 Od 190,873.26 -55.800.00
In 2014 to purchase an iphone 5s with 16GB memory without locking inany phone plan you have two options: 1) Buy at Walmart with a discounted price of$549. 2) Buy at T-Mobile with a 2-year 0% APR finance with a monthly payment of$26. In this case, the ticketed price would show $624=$26×24. By now, you shouldknow that 0% APR is a sham.Suppose that Jack didn’t have money to pay for a phone then. He had a credit cardwith a 18% APR. Should Jack use his credit card to buy the phone from Walmart orfrom T-mobile using its 0% APR financing? Support your answer with calculations.
A holder of a 90-day bill with 40 days left to maturity and a face value of $ 100, 000 chooses to sell it into the market. If bills maturing in 40 days are currently yielding 1.75% per annum, what price will be obtained? (Assume there are 365 days in a year, and answers must be rounded to two decimal places) $ Please only use a plain number as your answer and don't insert a comma. For example, if you get 1000, please use 1000, and don't use 1,000.
You purchase a T-bill (traded on Oct 2, 2020) at a price of 99.8% of face. The T-bill will mature on Dec 1, 2020. What is the bank discount yield of the T-bill? Write your answer to the nearest 0.01%, but without writing the %. For example, if your answer is 5.02%, put an answer of 5.02 into the box, not 0.0502.
You have $81,455,75 in a brokerage account, plan to deposit on additional $21,000 and you Dat the end of each future your year until account reaches $500,000, You expect to earn. D9% annually on the account. How long will it take to reach your goal? ΑΑΑΑΑΑΑΑΑΑΑΔΔΑΔ ΔΔΔΔ Δ Δ ΔΔΔΔΔΔΔΔΑ You just received an inheritance worth $200,000. You want to retive in 30 years and you don't plan to make any additional contributions. If you feed $1,000,000 in order to retire, what interest rate must you earn in order to reach your goal? $300 at the end of each of the An investment will раз next 3 years, $150 at the end of Year 4, $500 at the end of Year 5, $100 at the end of Year 6, and 1. require a $400 payment at the end of Year 7. If other investment of equal risk earn 7% annually, what is the present value of the cash flow stream 1 Using the same information from question 5, what is the future value of the cash flow stream?
The premium expense for 2020 is A.75,000. B.187,500. C.84,375. D.45,000.

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