{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

IvanRivera6-Financial.Markets.Project-Unit 4

# IvanRivera6-Financial.Markets.Project-Unit 4 - Unit 4...

This preview shows pages 1–2. Sign up to view the full content.

MT481 Financial Markets Prof. Weaver Ivan Rivera Chapter 6, Problem 1-4 pg. 147 1. T-bill Yield Assume an investor purchased a six month T-bill with a \$10,000 par value for \$9,000 and sold it 90 days later for \$9,100. What is the yield? For this problem we would have to bring the equation, which I think is Yield = Sale value – Purchase price divided by new purchase price x the days in the year for the time it took to sell the T-bill again so =9,100 – 9,000/ 9,000 x 365 /90 = 4.51% is the Yield 2. T-bill Discount Newly issued three-month T-bills with a par value of \$10,000 sold for \$9,700. Compute the T-bill discount. This would be Discount = Par – Purchase price/ Par val. X 360/day = 10,000 – 9,700 / 10,000 x 360/90 =12% 3. Commercial Paper Yield Assume an investor purchased six-month commercial paper with a face value of \$1 million for \$940,000. What is the yield? Basically same concept as the first question

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

IvanRivera6-Financial.Markets.Project-Unit 4 - Unit 4...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online