Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 4. in a treasury auction of $250 million par value

4. In a Treasury auction of $250 million par value 91-day T- bills, the following...

80.2K

Verified Solution

Question

Accounting

image
4. In a Treasury auction of $250 million par value 91-day T- bills, the following bids were submitted: Bidder Bid Amount Price 1 $50 million $0.9925 2 $75 million $0.9928 3 $15 million $0.9945 4 $ 100 million $0.9940 5 $60 million $0.9932 If the Treasury also received $25 million in non-competitive bids, who will receive T-bills, in what quantity, and at what price? 5. Consider two $10,000 face-value corporate bonds. One is currently selling for $9,980 and matures in 15 years. The other bond sells for $9,350 and matures in 13 years. Calculate the approximate yield to maturity (with the approximate formula I gave you in Chapter 12) for both bonds if each has a coupon rate equal to 5%. Assuming a yearly coupon payment, find which bond is a better buy

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students