All categories

1 year 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

The editing technique of joining together two shots is called

Artist 52 [7]

The answer is a montage. It is a system in film altering in which a progression of short shots are altered into a grouping to gather space, time, and data. It was acquainted with film fundamentally by Sergei Eisenstein, and early Soviet executives utilized it as an equivalent word for innovative altering.

6 0

3 years ago

Marsden Company has three departments occupying the following amount of floor space: Department 1 15,000 sq. ft. Department 2 10

PolarNik [594]

Answer:

the store rent that should be allocated in department 3 is $100000

Explanation:

if we assume that we charge the rent per square feet occupied, then we can say

department rent = charge per square feet* number of square feets

r = k*sf

also if

total rent = rent department 1 + rent department 2 + rent department 3

r total = r1 + r2 + r3 = k*sf1 + k*sf2 + k*sf3 = k*( sf1 + sf2 + sf3)

k= r total / ( sf1 + sf2 + sf3)

replacing values

k = $200000/(15000 sq.ft + 10000 sq.ft +25000 sq.ft ) = $ 4 per sq.ft

thus for department 3

r3 = k* sf3= $ 4 per sq.ft * 25000 sq.ft = $100000

rent department 3 = $100000

8 0

3 years ago

Which of the following statements is true? a. The production budget is not converted into dollars. b. The sales budget includes

Svetllana [295]

Answer:

e. All of these choices are correct.

Explanation:

Note:

Statement a. about production budget is correct as the production budget only estimates number of units to be produced, in quantity and not in dollars and therefore is not converted into dollars.

Statement b. about sales budget is also correct as it shows the quantity in units and also in value.

Statement c. about overhead budget is also correct as the budget segregates variable and fixed overheads properly.

Statement d. about labor budget is correct, as in this budget an average rate is used for calculating the expenses.

Therefore all of the above is correct.

8 0

3 years ago

During the annual Black Friday Sale, The OLX sold a pair of ski boots, regularly priced at $245.00, at a discount of 40%. The bo

ratelena [41]

Answer: $147

Explanation:

First find what 40% of $245.00 is:

= 40% * 245

= $98.00

The boots are sold at a discount of 40%. This means that 40% - which is $98 - was deducted from the value.

The selling price is therefore:

= 245 - 98

= $147

7 0

3 years ago

siniylev [52]

<span>"D. job-specific training" I believe...</span>

5 0

2 years ago