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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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Answer: Statement 1 ( Laptop) = Producer surplus

              Statement 2 ( watch ) = Neither

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Explanation:

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5 0
3 years ago
You are a very small company that sells healthcare insurance plans. You estimate that the breach of your customer database will
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3 years ago
Wireless communications is likely to be viewed as an essential part of an enterprise network infrastructure when:
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4 0
3 years ago
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kotegsom [21]

Answer:

2,000

Explanation:

On average, a person who have a full time job works will work approximately 2,000 hours each year reason been that we have 5 working days in a week and standard working hours in a weeks is 40 hours (5days×8hours daily) which means 8 hours daily , secondly we have 52 weeks in a year, now assuming that person takes 2 weeks off each year for his or her vacation we would have 50 weeks left (52 weeks-2 weeks vacation) which means that the person would be working 50 weeks of the year multiply by 40 hours a week which will give us a total of 2,000 hours each year.

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