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yanalaym [24]
3 years ago
11

A Treasury bill has a face value of 100K, 119 days to maturity, and is selling for $90 thousand. What is the effective annual yi

eld on this bill? Enter answer in percents, accurate to two decimal places.
Business
1 answer:
Dennis_Churaev [7]3 years ago
5 0

Answer:

Annual Yield = 34.08%

Explanation:

A treasury is a short-term financial instrument issued by a government with a maturity date of 365 days or less. It is issued for a value less than the its face value., therefore it is a discounted instrument.The face value is the amount that the investor will receive at the maturity of the bill.

To calculate the the effective annual yield of a bond; follow the steps below:

Step 1: Calculate the return earned for the investment period. This called the yield for the investment period. Note that the investment may be for less than 365 days depending on the number of days left to maturity when it was purchased.  

(Face Value - Price)/Price × 100

= ((100-90)/90)× 100= 11.%

This helps to ascertained the return earned as a percentage of the amount invested.

Step 2: Calculate the annual effective rate. This is required to determine the equivalent return (yield) per annum should the investment be made for one year.

Annualized Yield=  (Yield/Time period to maturity) × 365

                               = (11.11%/119) × 365

                                  = 34.08%

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To raise operating funds, Signal Aviation sold an airplane on January 1, 2018, to a finance company for $770,000. Signal immedia
liraira [26]

Answer:

Value of the lease = Annual lease payments * PVAD (11%, 13)

Value of the lease = $102,771 * 7.492236

Value of the lease = $770,000

Date      Account Titles and Explanation   Debit$     Credit$

Jan. 1     Leased Asset - Airplane                770000

                   Lease Liability                                            770000

Jan. 1     Lease Liability                                 102771

                    Cash                                                           102771

Dec. 31    Interest Expense                            73395

                ($770,000 - $102,771) x 11%

                     Interest  Payable                                        73395

Dec 31.   Depreciation Expenses                  40,000

               (600,000/15 years)

                       Accumulated Depreciation                     40,000

5 0
2 years ago
Explain how a company will “go public” by issuing an IPO.
user100 [1]

Answer:

They offer shares and release their company on the stock market to be publicly traded.

Explanation:

8 0
3 years ago
Because self-managed teams were established at the Kinex plant, the number of electrical components produced has increased by 12
alexgriva [62]

The statement that is likely true about self-managed teams at Kinex is that self-managed teams generally control all of their own administrative tasks, including hiring and firing employees.

Self-managed teams made productivity increase and workers have more positive attitudes at Kinex, as this method of management ensures greater autonomy and authority for teams, making work more flexible, faster and more cooperative.

Therefore, self-managed teams are capable of increasing employee development, valuing work, motivation and, consequently, productivity.

Learn more here:

brainly.com/question/12175622

4 0
2 years ago
Farmer Brown’s total cost curve is a. increasing at an increasing rate. b. increasing at a decreasing rate. c. increasing at a c
Rufina [12.5K]

The question is incomplete:

If Farmer Brown plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 5 bushels of wheat. If he plants 2 bags, he gets 9 bushels. If he plants 3 bags, he gets 12 bushels. A bag of seeds costs $120, and seeds are his only cost.

Farmer Brown's total-cost curve is

a. increasing at an increasing rate.

b. increasing at a decreasing rate.

c. increasing at a constant rate.

d. decreasing.

Answer:

a. increasing at an increasing rate.

Explanation:

To determine the answer, you can create a graph with the information given hich is attached.

You can see that the curve is increasing and because of that you can eliminate option d that is decreasing. Then, you have to consider that increasing at a constant rate would show an straight line which is not the case. Also, increasing at a decreasing rate would show a decreasing slope which is not what you see in the graph. Because of that, the answer is that Farmer Brown’s total cost curve is increasing at an increasing rate because the graphs shows an increasing slope.

8 0
3 years ago
The market for corn in Brazil has a large number of sellers and there is no difference in the products sold by each seller. As t
LenaWriter [7]

Answer:

Option (b) is correct.

Explanation:

In a market condition of pure competition, there are large number of buyers and sellers of the product. The sellers in this market condition are behaving like a price taker.

If a single firm wants to increase the price of the product then as a result the demand for their product is reduced or become zero.

There are some characterstics of the firms under pure competition market condition:

(i) They are selling homogeneous products.

(ii) Price taker firms

(iii) Large no. of buyers and sellers

 

8 0
3 years ago
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