The Republic of the Philippines issued P100,0o00 T-Bill that can be bought for 98. ThisT-Bill will mature 90 days. Compute the discount yield

Par value of bond = P 100,000 Price ratio = 98 Issue price = 100,000*98/100 = P 98,000 Discount…

Answered: The Republic of the Philippines issued…

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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The Republic of the Philippines issued P100,000 T-Bill that can be bought for 98. This T-Bill will mature 90 days. Compute the discount yield