1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
If you owned a trade secret, what methods would you employ to protect it?
Fantom [35]

Answer:

You would restrict access to the information,advise new employees and you would have an agreement with employees abd business partners.

7 0
3 years ago
When determining how much help is needed to write the business plan an entrepreneur should conduct a self-assessment. In this se
abruzzese [7]

venture capital would not be considered

<h3>What is venture capital?</h3>

Venture capital is a type of private equity financing provided by venture capital firms or funds to startups, early-stage, and emerging companies with high growth potential or that have demonstrated high growth.

Venture capital is money put into startups and small businesses that are high risk but have the potential for exponential growth. A venture capital investment seeks a high return for the venture capital firm, typically in the form of a startup acquisition or an IPO.

To know more about venture capital follow the link:

brainly.com/question/18776651

#SPJ4

5 0
2 years ago
Don works diligently to accomplish the company goals in an efficient and effective manner, utilizing his employees through plann
DanielleElmas [232]
<span>Don is a leader within the company that can be in charge of a group of people under his responsibility and direction. You can also be a supervisor and head of a division or department. He has enough qualities to play a leadership role, which is why he becomes a leader in the company with great positive and efficient aspects.</span>
6 0
4 years ago
The federal funds rate is the interest rate that banks charge one another for short-term (typically overnight) loans. When the F
WARRIOR [948]

Answer: decreases

                                                                         

Explanation: The following practice is done by the central bank in the situation of inflation when there is an excess supply of money in the economy.

The central bank tries to decrease the funds by selling the govt bonds to the banks. This results in decrease in funds from banks as they have to buy such bonds from their respective funds.

6 0
3 years ago
Perpetual Inventory Using FIFO
maks197457 [2]

The cost of goods sold on October 24 is $4830

The perpetual inventory as on October 31 is 70 units of value as $2310

Explanation:

The order of events in the given scenario,

  • Oct. 1 - Inventory 200 units at $30
  • Oct. 7 - Sold 160 units
  • Oct. 7 - Remaining Inventory 40 units at $30
  • Oct. 15 - Purchase 180 units at $33
  • Oct. 15 - Total Inventory 40 units at $30 + 180 units at $33
  • Oct. 15 - Total Inventory 220 units and value is $7140 ($30 * 40 + $33 * 180)
  • Oct. 24 - Sold 150 units
  • Oct. 24 - Taken 40 units from the purchase of $30 and 110 units from the purchase of $33 by using FIFO logic
  • Oct. 24 - Total cost of goods sold is $4830

So, cost of goods sold on October 24 is $4830

  • Oct. 24 - Total Inventory 70 units and value is ($7140  - $4830) = $2310

The perpetual inventory value as on October 31 is $2310

7 0
4 years ago
Other questions:
  • LiveTone, a line of cell phones, is in the maturity stage of the product life cycle. It has achieved brand insistence among its
    5·1 answer
  • 1. Investing in the same TQM Initiative round after round will create
    5·1 answer
  • Dean recently had a BRZ broadband connection installed. However, the connection was poor, and he didn't get the quality he requi
    9·1 answer
  • A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special
    8·1 answer
  • The study of behavior in situations of interdependence is known as
    9·1 answer
  • Assume that Thomas can afford to buy as many candy bars and ice cream cones as he wants. He would continue to consume both candy
    15·1 answer
  • A bond has a 7.5% annual coupon rate with 4 years to maturity and pays annual coupon. par value is $1000
    10·1 answer
  • During the proofreading task of the completion stage of a business message, be sure to
    12·1 answer
  • During the direst part of the Great Depression, approximately ______ percent of the nation's workers was unemployed.
    14·1 answer
  • Swifty Corporation's December 31, 2020 balance sheet showed the following 6% preferred stock $10 par value cumulative, 35000 sha
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!