Question
(1) You bought a $1,000 face value Treasury bill maturing in one year at the discount price of $800. Calculate the yield to maturity for
(1) You bought a $1,000 face value Treasury bill maturing in one year at the discount price of $800. Calculate the yield to maturity for this Treasury bill.
(2) You bought a $1,000 face value bond that promises to pay a fixed interest of $50 forever with no redemption date. The purchase price of the bond is $800. Calculate the interest on the bond.
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
6th Edition
150639681X, 978-1506396811
