Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I dont know how to get those answer ,please provides these progresses. Thank you very much ! An investor buys $1,000,000 30-day commercial paper for

I dont know how to get those answer ,please provides these progresses. Thank you very much !

  1. An investor buys $1,000,000 30-day commercial paper for $995,450. The yield on this commercial paper is

*a. 5.56%.

2. The yield on a $100,000 face value Treasury note priced at $97,500, maturing in 181 days is

*d. 5.17%.

3. The yield on a 91-day Treasury note is 5.35%. What is the price of the $1000 T-note?

*b. $986.84

4. The yield on a $100,000 Treasury note maturing in 71 days is 4.86% today. The original maturity of the T-note was 181 days. What is the price of the T-note today?

*c. $99,063.48

5. An institutional investor agrees to buy Treasury notes from a securities dealer for $997,250, and promises to sell the securities back to the dealer in 4 days for $997,575. The yield on this reverse repo for the investor is

*a. 2.97%

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

Analysis for Financial Management

Authors: Robert C. Higgins

12th edition

1259918963, 9781260140729 , 978-1259918964

More Books

Students also viewed these Finance questions