All categories

6 months ago

what is the bank discount rate on a $100,000 face value t-bill priced at $97,500, maturing in 181 days?

1 answer:

6 0

In this instance, the answer is 4.97%. When Bank discount rate is $100,000.The bank discount rate is calculated as follows: face value - price /face value * 360/days to maturity

the formula for determining the bank rate of return is as follows

When we apply relevant information to the equation, we receive:

Bank discount rate = 100,000 97,500/ 100,000 *360/ 181 = 0.0497 = 4.97

Why is the bank discount generate not a realistic assessment of the refund on holding a Treasury bonds?

Because it is an annual rate rate of return based on the par value of the bills rather than the actual dollar amount of money invested, and it is calculated on a 360-day rather than a 365-day basis, the Discount Yield can be a misleading measure of the return on T-Bills (used for Treasury bonds and notes).

To know more about Treasury bonds click here

brainly.com/question/29655346

#SPJ4

You might be interested in

Which best describes inserting a table using the Table Gallery?

aleksandr82 [10.1K]

Answer:

Explanation:

7 0

2 years ago

In late 2018, malnutrition was widespread in Venezuela. Writing in an opinion column in the New York Times, Javier Corrales a

suter [353]

Answer: B. No. Imposing a price control below the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller quantity, thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control.

Explanation:

If price controls are introduced below the equilibrium price in the market, farmers or sellers will supply less to the market because they will not be incentivized to produce more seeing as they are not making what they should be making.

This, coupled with increased demand on account of food being cheaper, will lead to shortages which would mean that those that could have been able to afford the food at the equilibrium price would not be able to access food leading to even worse food shortages.

8 0

2 years ago

On June 2nd, SEAkayak had the following details for its common stock: 1,000,000 shares authorized, 400,000 shares issued, and 40

kompoz [17]

Answer:

The authorized common stock shares remain 1,000,000 shares.

Explanation:

The authorized shares are not affected by movements in the shares, like issue of shares, repurchase, and resale of treasury stock shares. The authorized shares, therefore, represent the number of shares that the company is legally bound to issue without exceeding. The implication is that the company is free to issue shares less than or equal to the authorized shares, but it may not issue more than the authorized until it obtains a new authorization.

The movements are accounted for in separate accounts called Issued Common Stock Account and Treasury Stock Account. The treasury stock account is a contra account to the Common Stock.

3 0

2 years ago

Mary is introduced to three new people at a party. Later, however, she cannot remember the names of any of her new acquaintances

MissTica

Answer:

She never encoded the names into long-term memory is the correct answer.

Explanation:

7 0

2 years ago

If $1000 is invested at 6% interest, compounded annually, then after n years the investment is worth an

Temka [501]

Answer:

Results are below.

Explanation:

Giving the following information:

Initial investment= $1,000

Annual interest rate= 6% = 0.06

Number of periods= n

<u>To calculate the future value after "n" periods, we need to use the following formula:</u>

FV= PV*(1+i)^n

<u>For example:</u>

n= 6 years

FV= 1,000*(1.06^6)

FV= $1,418.52

6 0

2 years ago