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Serhud [2]
4 years ago
12

A U.S. Treasury bill with 157 days to maturity is quoted at a discount yield of 2.62 percent. Assume a $1 million face value. Wh

at is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)
Business
1 answer:
cupoosta [38]4 years ago
5 0

Answer:

2.76%

Explanation:

Discount yield = ((Par Value - Price) / Par Value) * (365 / d) * 100

Price =Par value - {(Discount yield × Par Value × d)/ (365 × 100) }

price =1,000,000 - { (2.62 × 1,000,000 × 157)/36,500} = $988,730

Bond Equivalent Yield = ((Par Value - Price) / Price) * (365 / d) * 100

d is days of maturity

BEY =( (1,000,000 - 988,730)/988,730) × (365/157) × 100 = 2.76%

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If these patterns hold for decreases as well as for increases, by how much would the value of the financial securities decline i
Ratling [72]

Answer:

$115.20

Explanation:

Missing part is <em>"Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing financial securities at a geometric rate, specifically from $4 to $8 to $16 to $32 to $64 to $128 over a six-year time period. Over the same period, the value of the assets underlying the securities rose at an arithmetic rate from $4 to $6 to $8 to $10 to $12 to $14."</em>

<em />

If the underlying assets price fall by $10, then the securities value will fall by a ratio of $10

Value of securities = $128/$10 = $12.80

Decline in value of securities = $128 - $12.80 = $115.20. Thus, the Decline in value of the financial securities is $115.20

5 0
3 years ago
Keisler's has cost of goods sold of $11,518, interest expense of $315, dividends of $420, depreciation of $811, and a change in
True [87]
Solving: 420+296 = 716
716/(1-.21) = 906.33

Answer: $906.33
6 0
3 years ago
Allocative efficiency occurs:
jonny [76]

Answer:

a. Anywhere inside or on the production possibilities frontier.

Explanation:

In an economy, the allocative efficiency may be defined as the economic state where the production of various goods or services is aligned with the preferences with the consumers.  

The allocative efficiency always materializes at the intersection of the supply curves and the demand curves.

On the \text{equilibrium point,} the price for a supply \text{exactly matches} with the demand for the product \text{for that supply} at that price, and thus all the products are sold.

It occurs anywhere on the production possibilities frontier or on the inside of the frontier.

Therefore, the correct option is (a).

5 0
3 years ago
Do you think you could be an accountant? List three reasons why or why not.
kirill115 [55]
These questions are for your opinion.
7 0
3 years ago
A market researcher for a cable company is seeking to determine the number of households in a selected neighborhood that consist
diamong [38]

Answer:

Obtain census information available on the internet,

Explanation:

The number of households in the neighbourhood must have been captured during census and uploaded on the census board website or those of relevant agencies.

A visit to such websites to get the number of households in the neighbourhood of interest is very cost-efficient as the only thing that the market researcher needs to do is to have just internet subscription package which can be obtained for an extreme lesser fee when compared to paying the households visits, transporting to and fro and replenishing lost energy by buying food or taking energy drinks.

5 0
4 years ago
Read 2 more answers
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