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Mkey [24]
3 years ago
10

Suppose investors can earn a return of 2% per 6 months on a Treasury note with 6 months remaining until maturity. The face value

of the T-bill is $10,000. What price would you expect a 6-month maturity Treasury bill to sell for?
Business
1 answer:
Katena32 [7]3 years ago
5 0

Answer:

Price of treasury bill = $9,803.92

Explanation:

<em>The price of the treasury note would be the present value of the future receivable on maturity discounted at the rate of return of 2% per six-month.</em>

The formula is FV = PV × (1+r)^(n)

PV = Present Value- ?

FV - Future Value, - 10,000

n- number of years- 1/2

r- interest rate - 2%

PV = 10,000 × (1.02)^(-1)

PV = 9,803.92

Price of treasury bill = $9,803.92

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Assume the equilibrium price for a good is $10. If the market price is $5, a:_____________
stellarik [79]

Answer:

c. Shortage will cause the price to rise toward $10

Explanation:

c. Shortage will cause the price to rise toward $10

The equilibrium price is $10 this any price below the equilibrium price will create a shortage in the market because at price lower than equilibrium price, the demand is greater than the supply. Thus, shortage will push the prices upwards or towards equilibrium price.

6 0
3 years ago
An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is
SIZIF [17.4K]
The answer is a valid contract. A valid contract occurs when both parties has expressed or had shown agreement when engaging to certain services or products as means of showing that they both have negotiate and came to an understanding of agreement with what they are pertaining to in which is shown above as the adults involved has an agreement of paying the bicycle that shows a valid contract.

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3 years ago
An investment banker has recommended aâ $100,000 portfolio containing assetsâ B, D, and F.â $20,000 will be invested in assetâ B
soldier1979 [14.2K]

Answer:

β = 1.45

Explanation:

The beta of the portfolio is defined as an average of the betas (β) of each asset within the portfolio weighted by their respective invested amounts (A):

A_{P}* \beta_{P} =A_{B}* \beta_{B} +A_{D}* \beta_{D} +A_{F}* \beta_{F} \\\beta_{P} =\frac{20,000 * 1.5 + 50,000*2.0 +30,000*0.5}{100,000}\\\beta_{P} = 1.45

The beta of the portfolio is 1.45

8 0
3 years ago
What is most likely to cause a rise in expenditure in an economy?
d1i1m1o1n [39]

Answer:

B

Explanation:

because b i think gimme vbucks

3 0
3 years ago
A friend offers you a ticket to a Chicago Cubs baseball game for $40. You know you can sell the ticket to another friend for $50
olganol [36]

Answer:

$50

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

If I decide to go to the game, I forgot the opportunity of selling the ticket for $50 which is the next best use of the ticket.

I hope my answer helps you

6 0
3 years ago
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