Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

1. Given discount yield, find price (assume 360 dayslyear): A $300,000 T bill ha

ID: 1193303 • Letter: 1

Question

1. Given discount yield, find price (assume 360 dayslyear): A $300,000 T bill has 190 days to maturity and a 6% discount yield. Its price is $ 2. Given price, find discount yield (assume 360 days/year): A $250,000 T bill has 235 days to maturity and sells for $240,697.92. Its discount yield is 3. Given add-on yield, find price (assume 360 days/year): A $500,000 Eurodollar CD has 110 days to maturity and an add-on yield of 6.1 %. Its price is $ 4. Given price, find add-on yield (assume 360 days/year): A $400,000 Eurodollar CD has a price of $390,117.04 with 160 days to maturity. Its add-on yield is 5. Compounding (annual): I have $1,000 to invest. The interest rate is 6.25%. At the end of years, I will have a) 1 year c) d) e) f) years 3 years two and a half years S half of a year a quarter of a year $ 6. Present value(annual discounting): I want to have $1,000 in-_ years. The interest rate is 5.5%. I need to currently invest: a) 1 year b) 2 years c) 3 years d) two and a half years S e) half of a year f) a quarter of a year $

Explanation / Answer

1. Given discount yield, find price (assume 360 dayslyear): A $300,000 T bill ha