Question
a-1. Determine the effective annual yield of a three-month bill selling at $9,782. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
a-1. Determine the effective annual yield of a three-month bill selling at $9,782. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Effective annual yield %
a-2. Determine the effective annual yield of a six-month bill selling at $9,571. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Effective annual yield %
a-3. Which security offers a higher effective annual yield?
-
Three-month bill
-
Six-month bill
b. Calculate the bank discount yield on each bill. Assume it as a U.S. treasury bill. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
| Discount Yield | |
| Three-month bill | % |
| Six-month bill | % |
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Personal Finance
Authors: Jack R Kapoor, Glencoe McGraw Hill, Les R Dlabay, Robert J Hughes
1st Edition
0078698006, 9780078698002
