The yield on this repo to the bank is calculated as follows What is the yield of the repo if it has a 7-ĭay maturity? Will it be any different if its maturity is 21 days?Īnswer: a. In this case the latter is theĬorrespondent bank and the security has been priced at 24,950,000, with a promise toīuy them back at the price of 25,000,000. Treasury securities from Maxi Peddy Citi Bank. Penny Powers Bank enters a repurchase agreement in which it agrees to buy The current price of the security is 9,875. Francis would like to purchase a Treasury bill that has a 10,000 face value and isĦ8days from maturity.Calculate its discount yield, BEY and EAR.Īnswer: Discount yield: icp, d = (($5m. A 5M commercial paper issue is presently selling at 98 percent of its face valueĪnd 136 days from its maturity.Compute the security’s discount yield, bondĮquivalent yield and Effective Annual Return if it's 65days from maturity.Īnswer: Discount yield: iT-bill, d = (($1m. Lianna’s Golds and Gems Incorporated has a 1M Treasury Bill which at present is.Answer them and will have it checked on our next Auditing and Assurance Services: an Applied Approach (Iris Stuart).Rubin's Pathology (Raphael Rubin David S.The Law on Obligations and Contracts (Hector S.Calculus (Gilbert Strang Edwin Prine Herman).Auditing and Assurance Concepts and Applications (Darell Joe O.The Tragedy of American Diplomacy (William Appleman Williams).
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