All categories

3 years ago

A T-bill that is 290 days from maturity is selling for $96,040. The T-bill has a face value of $100,000.

Business

1 answer:

umka2103 [35]3 years ago

4 0

Answer: a 0.049, 0.05 and 0.05 or 5%

b 0.039, 0.041 and 0.041 or 4%

Explanation:

Ai discounted yield = [(Face value - purchase price)/Face value] * 360/ maturity

Discount yield =:[(100000 - 96040)/100000] * 360/290

= 0.0396* 1.24

= 0.049

ii. Bond equivalent yield (BEY) = [(Face value - purchase price)/purchase value] * 365/M

BEY= [(100000 - 96040)/96040] * 365/290

BEY = 0.05

iii EAR = [(1+BEY/n)exp n - 1)

EAR = [(1 + 0.05/(365/290)) exp (360/290) - 1]

EAR = [(1 + 0.05/1.26) exp (1.26) - 1

EAR = (1.04) exp (1.26) - 1

EAR = 0.05 or 5%

The same formula are applied for the B part

Discount yield = [(100000-96040)/100000] * 360/365

Discount yield = 0.0396 * 0.986

= 0.039

B ii. BEY = [(100000 - 96040)/96040] * 365/365

BEY = 0.041 × 1

BEY = 0.041

B iii. EAR = [(1 + 0.041/(365/365))exp (365/365) - 1

EAR = (1 + 0.41) - 1

EAR = 0.041 or 4%

You might be interested in

The Argentine government has recently been imposing heavy trade restrictions. Taxes on exports are a major source of revenue for

kati45 [8]

Answer:

The correct option is "B"

Explanation:

The burden substantial exchange limitation by The Argentine government cause to upset exchange and influences imports Due to prohibitive arrangement exchange it builds the expense of bringing in products and causing to diminish in supply in Argentinean advertise Before the exchange limitations, the market was working effectively, and was overwhelmed with imported merchandise because of the exchange limitations, import merchandise decays because of increment in cost.

3 0

3 years ago

Read 2 more answers

Afirm has production function q=10"(L^0.5)*(K^0.5), where "L"0.5" means "L raised to the 0.5 power," and the same applies to the

Amanda [17]

Answer:

(A) 15 × p

(B) $225\times p{^2}$

Explanation:

(B) direct= demand function of labor will be,

Q: f(w),

where Q is labor demand quantity and is function of wage

K=9 constant, then production function changes to,

$=30L^{0.5}$

Marginal product of labor:

$= 15L^{-0.5}$

Marginal revenue product or value of marginal product:

$=15p\times L^{- 0.5}$

This is showing what revenue a firm will generate due to hiring one additional unit of labor.

So firm will keep hiring until the revenue the additional labor is generating is equal to its hiring cost or wage.

So, putting MRP or VMP to wage:

$P\times15\times L^{-0.5}=W$

By solving,

$\frac{(225\times p^{2})}{W^{2}}=L$

And the multiplicative term is $225\times p{^2}$

(A) Inverse demand function of labor will be,

W: f(Q)

where W is wage rate and demand function of labor demanded quantity.

As previously solved,

$P\times15 \times L^{0.5}=W$

and the multiplicative constant term is 15 × p.

$=10L^{0.5}\times k{^0.5}$

$MP=\frac{(5\times k^{0.5})}{L^{0.5}}$

$VMP=\frac{P(5\times k^{0.5})}{L^{0.5}}$

( p is market price of good that firm is producing using labor)

putting it equal to Wage)

$W=\frac{(5\times k^{0.5})}{L^{0.5}}$

and the constant term is $P\times 5\times k^{0.5}$ .

Note:

I did a) second place and b) on first . I already put the serial alphabet on the start of the answer.

8 0

3 years ago

Political campaigns that operate at a local level and use face-to-face communication to generate interest and momentum by citize

marishachu [46]

Grassroots politics is a political campaigns works the way it uses face to face communications by citizens to gain interest and momentum.

5 0

3 years ago

Public opinion suggests that overall, americans' commitment to the country and its core institutions is

ivanzaharov [21]

Public opinion suggests that overall, Americans' commitment to the country and its core institutions is strong. Although the United States is composed of 50 states, it remains to be united in its cause. Until now, it is considered to be one of the most powerful countries in the world. This has been the case due to the Americans' strong sense of patriarchy.

3 0

3 years ago

7 pounds of raw material are required to make 1 finished unit. The company desires an ending raw materials inventory for each mo

timurjin [86]

Answer:

Instructions are below.

Explanation:

We weren't provided with enough information to answer the request. But, I will give an example and formulas to guide an answer.

For example:

Production in units:

May=20,000

June= 22,000

Beginning inventory of direct materials= 8,000

To calculate the purchase for May, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 20,000*7 + (22,000*7)*0.29 - 8,000

Purchases= 176,660 pounds

7 0

3 years ago