Question
Hello! Can you help me solve these questions, please! I'd appreciated! Thanks so much! Question1 A $100,000, 182-day T-bill is priced at $99,204 on its
Hello! Can you help me solve these questions, please! I'd appreciated!
Thanks so much!
Question1
A $100,000, 182-day T-bill is priced at $99,204 on its issue date. What simple interst rate will it yield to the purchaser if held until maturity? Calculate your answer to 2 decimal places, but don't include the % symbol.
Question3
An investor wishes to purchase a $100,000 T-bill 83 days before its maturity date at a price that will yield 3.00% simple interest.
Question2
You plan to invest $10,000 for 180 days. Your bank offers a rate of 2.60% on 90-day GICS and 2.80% on 180-day GICS.
How much more interest will you earn if you purchase a single 180-day GIC instead of two consecutive 90-day GICS? Remember that the interest earned from the first 90-day GIC will be invested in the second 90-day GIC along with the principal.
Express your answer to 2 decimal places but do not include the $ sign.
Question4
An investment contract promises two payments of $500, the first in 6 months and the second in 8 months. Calculate the value of the contract today if the required rate of return on the investment is 6.45%.
Question5
Calculate the maturity value of $13,000 placed in a 236-day term deposit paying an interest rate of 3.90%. Express your answer to 2 decimal places, but don't include the $ sign.
Question6
Rob borrowed $4,560 from Richard and signed a contract agreeing to pay it back 10 months later with 5.85% simple interest. After 3 months, Richard sold the contract to Chris at a price that would earn Chris 5.00% simple interest per annum. Calculate the price that Chris paid Richard.
Question7
Rob has $1,000 to invest for 120 days and is considering two options.
Option 1: He can invest the money in a 120-day GIC paying simple interest of 4.62%.
Option 2: He can invest the money in a 60-day GIC paying simple interest of 4.50% and then re-invest the maturity value into another 60-day GIC. What would the interest rate on the second 60-day GIC have to be for both options to be equivalent? Round your answer to two decimal places and don't include the % symbol.
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