The Treasury Department would like to raise $24 billion in 90 day T Bills. The auction results are as follows:Noncompetitive bids = $3.4 billionCompetitive Bids:InvestorBid PriceQuantity(Face Value)99.94677%$7.8 billion99.97567%$5.8 billion99.95668%$5.2 billionD99.96997%$3.2 billionE99.95112%$8.6 billionWhat is the stop-out price?O 99.97567%O 99.96997%O 99.94677%99.95668%99.95112%

Stop-Out Price is lowest price at which Treasury Securities are issued or highest price by bidders…

The Treasury Department would like to raise $24 billion in 90 day T Bills. The auction results are as follows: Noncompetitive bids $3.4 billion Competitive Bids: Investor Bid Price Quantity(Face Value). A 99.94677% $7.8 billion B 99.97567% $5.8 billion 99.95668% $5.2 billion 99.96997% $3.2 billion E 99.95112% $8.6 billion What is the stop-out price? 99.97567% 99.96997% 99.94677% 99.95668% 99.95112%

The Treasury Department would like to raise $24 billion in 90 day T Bills. The auction results are as follows: Noncompetitive bids $3.4 billion Competitive Bids: Investor Bid Price Quantity(Face Value). A 99.94677% $7.8 billion B 99.97567% $5.8 billion 99.95668% $5.2 billion 99.96997% $3.2 billion E 99.95112% $8.6 billion What is the stop-out price? 99.97567% 99.96997% 99.94677% 99.95668% 99.95112%

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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You obtained a sample of Treasury bill auction results, but some of the key info is missing. Based on the information provided in the table below, answer the following questions. Treasury Auction Results 56-day Bill Term and Type of Security CUSIP Number High Rate Allotted at High Price Investment Rate Median Rate Low Rate Issue Date Maturity Date 917536YD6 2.875% (missing) (missing) (missing) 2.750% 2.500% Total September 30, 2022 November 25, 2022 Tendered Accepted Competitive $110,325,483,000 $5,051,300,500 Noncompetitive (missing) (missing) $6,611,971,000
The table below lists the principal amounts of each bill auctioned and the scale of bidding on 26th January 2018. Maturity Date Principal Amount Sold Aggregate Scale of Bids 26th February 2018 £500 million £2711.5 million 30th April 2018 £500 million £2869.0 million 30th July 2018 £2000 million £6134.5 million Calculate and comment on the significance of the bid-to-cover ratios given the size of the yields.
Question 3 The US Treasury is conducting an auction for $1.6 billion of 90-day US Treasury Bills. What is the market- clearing price based on the following competitive bids? Firm Lubar & Co Bolton Trading Lehman Brothers Goldman Sachs Spellman and Fisher Amount ($ in millions) $700 $400 $300 Price $450 $0.9933 $600 $0.9937 $0.9941 $0.9930 $0.9936
If the treasury bill has $10.000 par value 200 days to maturity and is quoted: Bid: 0,720 Ask: 0,630 then: a) The price for the buyer is $9.965 b) The price for the seller is $9.965 c) The price for the buyer is $9.970 d) The price for the seller is $9.960
A Treasury bill has a bid yield of 2.75 and an ask yield of 2.73. The bill matures in 152 days. Assume a face value of $1,000. (Note: You may need to review material from an earlier chapter for the relevant formula.) a. At what price could you sell the Treasury bill? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. Treasury bill price b. What is the dollar spread for this bill? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. Dollar spread
1. The price of an item in 2004 was $1.3. Use an inflation rate of 4% to calculate its price in 2030. Round to the nearest cent. а. $3.60 b. $3.66 C. $3.64 d. $3.67 е. $4.14 2. If $14,000 had been invested in the Fictious Fund on June 30, 1995, then on June 30, 2005 the investment would have been worth $55,177.52. What interest rate compounded annually would this investment have earned? Round to the nearest hundredth of a percent. а. 14.70% b. 39.41% С. 29.41% d. 13.71% е. 29.41% 3. A credit card bill due on April 5 showed a balance of $263. The card holder forgot to pay the bill until the 20th of the month, but paid the full amount of $263 at that time. In the mean time, the card was used to make purchases of $138 on the 10th of the month and $74 on the 20th of the month. What was the average daily balance for the billing period? a. $362.50 b. $95.97 С. $166.07 d. $184.27
Answer the next 4 questions using the information in the following table. You are considering the purchase of a $1,000 par value Treasury Bill and observe the following quotes for T-Bills in the market: Ignore transaction costs. Time to Maturity (days) Bid Asked % % 60 1.64 1.55 88 1.63 1.54 116 1.62 1.53 144 1.61 1.52 4. The bid price of a T-bill in the secondary market is A. the price at which the dealer in T-bills is willing to sell the bill. B. the price at which the investor in T-bills is willing to sell the bill. C. larger than the ask price of the T-bill. D. The price at which the investor can buy the T-bill. 5. What is the purchase price of the 144-day bill that you face? А. $993.29 B. $993.56 С. $993.92 D. $994.05
A Treasury bill has a bid yield of 3.46 and an ask yield of 3.4. The bill matures in 123 days. Assume a face value of $1,000. a. At what price could you sell the Treasury bill? (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. What is the dollar spread for this bill? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
Assume that today’s Wall Street Journal is showing the following information for a given Treasury Bill with a $10,000 face value: Days to maturity: 153 Bid yield: 0.038 Ask yield: 0.034 What is the price you will get if you were to sell one T-bill to the dealer? What is the bid-ask-spread for the T-bill above? What does a narrow bid-ask-spread indicate?
1. Explain FOUR(4) reasons that make money market instruments a popular investment among investors even though the return is low 2. On 1st January 2021, Howard bought a Treasury bill with RM 950. The T-bill has face value of RM1,000 and maturity day of 180 days. Calculate the annualized holding period yield if Howard sells the T-bill on24thMarch 2021 with the price of RM980 3. Elaborate THREE (3) internal factors that contributes to the price volatility of a listed company stock. 4. “When a stock is overvalued, its return is less than the required rate of return.” Is this statement true or false? Justify.
An investment bank sells securities under a repurchase agreement for $800.438 million and buys them back in 7 days for $800.568 million. What is the repo's single payment yield?Report your answer in % to the nearest 0.01%;
A Treasury bill has a bid yield of 2.79 and an ask yield of 2.77. The bill matures in 175 days. Assume a face value of $1,000. (Note: You may need to review material from an earlier chapter for the relevant formula.) a. At what price could you sell the Treasury bill? (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. What is the dollar spread for this bill? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

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