Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A 182-day Canadian T-bill for 100 has a quoted price of 94.771 and a quoted yield rate of 11.07%. Show that any price from 94.767

A 182-day Canadian T-bill for 100 has a quoted price of 94.771 and a quoted yield rate of 11.07%. Show that any price from 94.767 to 94.771 inclusive has a corresponding yield rate of 11.07%. This shows that the yield rate quote to 0.01% is not as accurate a measure for the T-bill as is the price to the 10ths of a cent.

so what I tried is using the equation you = (F-P)/P * (365/days of t-bill) and I solved for P to get 94.7689 which kinda shows that 11.07% yield gives multiple results but I'm just hoping there's a more time efficient way of doing this question

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Financing Analyzing And Structuring Projects

Authors: Frank J Fabozzi, Carmel De Nahlik

1st Edition

9811232393, 9789811232398

More Books

Students also viewed these Finance questions

Question

What level of candor do decision makers require?

Answered: 1 week ago