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Luden [163]
3 years ago
13

A T-bill quote sheet has 60-day T-bill quotes with a 4.95 ask and a 4.89 bid. If the bill has a $10,000 face value, an investor

could sell this bill for _____.
a. $9,918.50
b. $9,919.62
c. $9,917.50
d. $10,000
Business
2 answers:
PilotLPTM [1.2K]3 years ago
5 0

Answer:

c. $9,917.50

Explanation:

The bid price is the rate at which an investor will buy (4.89). While the ask price is the rate at which the T bill will be sold ($4.95).

In this question we are concerned with the ask price.

To calculate the selling price use the following formula

Yield discount= (face value-price)/face value * (360/maturity)

4.95%= (10,000- price)/10,000 * (360/60)

Cross-multiply

10,000 * 0.0495= (10,000- price) * 6

495/6= 10,000- price

price= 10,000-82.5

Price= $9,917.50

In-s [12.5K]3 years ago
3 0

Answer:The correct answer is a). $9,918.50

Explanation: In selling, the investor will use the bid price of $4.89 alongside the face value of the bill.

That is to say, the face value * (1-(bid price * no. of days)/days in a year) = 10000 * (1-(0.0489*60)/360) = $9,918.50

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PLEASE HELP ME
zloy xaker [14]
I would say b, c, and d
3 0
4 years ago
A discount bond is also called a ________ because the owner does not receive periodic payments.
a_sh-v [17]

A discount bond is also called a <u>zero coupon bond</u> because the owner does not receive periodic payments.

A discount bond is a bond that is issued for much less than its par—or face—fee. discount bonds can also be a bond currently trading for less than its face cost inside the secondary market. A bond is considered a deep-cut price bond if it's far bought at a substantially decrease price than the par fee, normally at 20% or more.

A zero-coupon bond is a bond that pays no interest and trades at a reduction to its face price. It is also known as a natural cut price bond or deep cut price bond. U.S. Treasury payments are an example of a 0-coupon bond.

Coupons are the promised hobby payments of a bond, paid periodically till the adulthood date of the bond. The coupon rate determines the quantity of every coupon fee of a bond. The coupon rate, expressed as an APR, is about by using the issuer and said on the bond certificate.

Learn more about discount bonds here brainly.com/question/16748047

#SPJ4

3 0
1 year ago
In order to achieve a competitive advantage, Coastal Haven Hotels, a chain of luxury beach resorts, wants to increase its market
Anna11 [10]

Answer:

The correct answer is b. Take advantage of economies of scale and scope by opening a chain of lower priced economy hotels that leverage the Coastal Haven brand image.

Explanation:

The economy of scale refers to the power that a company has when it reaches an optimum level of production to produce more at a lower cost, that is, as production in a company grows, its costs per unit produced are reduced. The more it produces, the less it costs to produce each unit.

In other words, it means that if in a production function the quantity of all inputs used is increased by one percentage, the output produced can increase by that same percentage or increase by greater or lesser amount than the same percentage. If it increases by the same percentage, we would be faced with constant economies of scale, if it were in more, they would be growing economies of scale, if it were in less, in decreasing economies of scale.

In microeconomics, economy of scale is understood as the advantages in terms of costs that a company obtains thanks to the expansion and good synergies that it has applied to its competitive environment .

The concept of "economies of scale" serves for the long term, and refers to reductions in unit cost as the size of an installation and the levels of input utilization increase. The usual sources of economies of scale are the inventory (large-scale purchase of materials through long-term contracts), management and logistics (increasing the specialization of managers), financial (obtaining lower interest costs in bank financing), marketing and technology (benefiting of the scale yields in the production function).

8 0
3 years ago
Blue corporation's standards call for 2,500 direct labor-hours to produce 1,000 units of product. during may 900 units were prod
Vladimir [108]
Given:
standard hours: 2,500 dl for 1,000 units
actual hours: 2,400 dl for 900 units

Standard direct labor-hours per unit = 2,500 direct labor-hours ÷ 1,000 units= 2.5 direct labor-hours per unit

Standard hours allowed = 2.5 direct labor hours per unit × 900 units<span>= 2,250 hours

The standard hours allowed for may production would be 2,250 hours.</span>
6 0
3 years ago
Distinguish between the features and benefits of getting a student loan and getting a grant or a scholarship.
Yuliya22 [10]

Student Loan:

  • borrowed money that needs to be repaid
  • part of credit history

Grant or Scholarship

  • given on the basis of financial need
  • Given based on academic achievement and financial need

The major difference between loans and scholarships is that loans will have to be repaid and scholarships do not.

5 0
3 years ago
Read 2 more answers
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