Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 08, 2020

An investor buys a T-bill at a bank discount quote of 5.70 with 120 days to maturity for 9,810.00. The bill has a face value

An investor buys a T-bill at a bank discount quote of 5.70 with 120 days to maturity for 9,810.00. The bill has a face value of $10,000. The investor's bond equivalent yield on this investment is _____.

5.73%
6.35%
5.89%
5.81%

Step by Step Solution

★★★★★

3.47 Rating (150 Votes )

There are 3 Steps involved in it

Step: 1

bonds equivalent yield future value priceprice 365 days to ma... 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

Step: 3

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

Fundamentals Of Investing

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

13th Edition

978-0134083308, 013408330X

More Books

Students also viewed these Accounting questions

Question

★★★★★

a. An investor buys a 4.4% annual coupon payment bond with six years to maturity. The bond has a yield-to-maturity of 6%. The par value is $1000. i. Determine the market price of the bond. ii....

Answered: 1 week ago

Question

★★★★★

An investor buys a call at a price of $4.50 with an exercise price of $40. At what stock price will the investor break even on the purchase of the call?

Answered: 1 week ago

Question

★★★★★

An investor buys a stock for $10 per share and expects the value of the stock to grow annually at 9 percent for ten years, at which time the individual plans to sell it. What is the anticipated sale...

Answered: 1 week ago

Question

★★★★★

A projectile launcher fires a marble of mass 2 5 grams perfectly vertical. The launcher uses a spring with a constant, k , of 6 0 . 0 Newtons / meter . If the spring is depressed 1 5 centimeters and...

Answered: 1 week ago

Question

★★★★★

For overcoming the Coulomb barrier for fusion, methods other than heating the fusible material have been suggested. For example, if you were to use two particle accelerators to accelerate two beams...

Answered: 1 week ago

Question

★★★★★

Assume that interest rate parity holds and that 90-day risk-free securities yield 5 percent in the United States and 5.3 percent in Germany. In the spot market, 1 euro equals $0.80 dollar. a. Is the...

Answered: 1 week ago

Question

★★★★★

A mathematics professor, when leaving for work, forgets his car keys with a probability p1 and his office keys with a probability p2 (we assume that these two events are independent). (i) What is the...

Answered: 1 week ago

Question

★★★★★

Knight, Inc., has issued a three-year bond that pays a coupon of 6.10 percent. Coupon payments are made semiannually. Given the market rate of interest of 5.80 percent, what is the market value of...

Answered: 1 week ago

Question

★★★★★

Please write and correct the ArrayList code so that the driver will generate the given output. There are quite a few errors/missing lines in ArrayList that need to be corrected. This is a data...

Answered: 1 week ago

Question

★★★★★

Bruce also requires a calculation of taxable income for the most recent year ended December 31, 2019. The calculation should be prepared in Excel. He has also requested that you prepare the year-end...

Answered: 1 week ago

Question

★★★★★

Problem 3-1A Logan Krause started her own consulting firm, Krause Consulting, on May 1, 2017. The trial balance at May 31 is as follows. KRAUSE CONSULTING Trial Balance May 31, 2017 Account Number...

Answered: 1 week ago

Question

★★★★★

Take a few moments to write down all the ways people could get hurt at work. Then categorize them into the following categories in table/chart: Chemical Biological Physical Ergonomics Psychosocial

Answered: 1 week ago

Question

★★★★★

An analysis of transactions for Blossom Company, a certified public accounting firm, for the month of August is as follows. Assume that August is the company's first month of business. Assets...

Answered: 1 week ago

Question

★★★★★

Your (all equity) firm sells 35,000,000 units at $2.30 per unit, the variable cost per unit is $1.84, and fixed costs are $6,500,000, giving your firm a DOL of 1.6771. The firm faces a tax rate of 40...

Answered: 1 week ago

Question

★★★★★

Janumadn cinta paE A single-phase circuit has a voltage of 120 V and a current of 5 A. If the power factor is 0.6 lagging, calculate the apparent power. Please indicate the name of power for what we...

Answered: 1 week ago

Question

★★★★★

You, CPA, work as an analyst for Glo Inc., a publicly traded and rapidly growing cosmetic company. Glo's products retail at a popular beauty store chain across Canada. Recently, Glo has been...

Answered: 1 week ago

Question

★★★★★

so Determine the number of cycles to execut 5 0 instructions for non - pipelined processor and pipelined processor.

Answered: 1 week ago

Question

★★★★★

Suppose the index goes to 18 percent in year 5. What is the effective cost of the unrestricted ARM?

Answered: 1 week ago

Question

★★★★★

The following table contains annual returns for the stocks of Home Depot (HD) and Lowe's (LOW). The returns are calculated using end-of-year prices (adjusted for dividends and stock splits) retrieved...

Answered: 1 week ago

Question

★★★★★

In early January 2010, you purchased $30,000 worth of some high-grade corporate bonds. The bonds carried a coupon of and mature in 2024. You paid a price of 94.125 when you bought the bonds. Over the...

Answered: 1 week ago

Question

★★★★★

Is the CAPM a predictive model? Why do beta and the CAPM remain important to investors?

Answered: 1 week ago

Question

★★★★★

In the first week of July, a beer and wine store sold 871 cases of beer and paid refunds on 637 cases of empty bottles, for a net revenue of $12,632.10. For the following week the net revenue was...

Answered: 1 week ago

Question

★★★★★

Colby inherited a small savings-bond portfolio consisting of four $1000 face- value Canada Savings Bonds and six $1000 face-value Ontario Savings Bonds. In the first year, the portfolio earned $438...

Answered: 1 week ago

Question

★★★★★

Mr. and Mrs. Chudnowski paid $1050 to fly with their three children from Winnipeg to Regina. Mrs. Ramsey paid $610 for herself and two children on the same flight. What were the airfares per adult...

Answered: 1 week ago

Previous Question Next Question