Question
Suppose you are given the following data about a T-bill: Face value $1,000,000, current price $979,644, days to maturity, 80. What is the effective
Suppose you are given the following data about a T-bill: Face value $1,000,000, current price $979,644, days to maturity, 80. What is the effective annualized yield on this T-bill if held until maturity? Question 5 If the interest rate is 10%, what is the present value of a security that pays you $1100 next year, $1210 the year after, and $1331 the year after that? Question 6 What is the yield to maturity on a simple loan for $1 million that requires a repayment of $2 million in 5 year's time?
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Answer Question 1 Effective Annualized Yield on Tbill The effective annualized yield on a Tbill can be calculated using the following formula Effectiv...Get Instant Access to Expert-Tailored Solutions
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