What is the bank discount rate on a $100,000 face value T-bill priced at $97,500,...
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Finance
What is the bank discount rate on a $100,000 face value T-bill priced at $97,500, maturing in 181 days?
2.50%
4.84%
4.97%
5.10%
None of the above
The bank discount rate (ask) on a 71-day T-bill is 4.86%. What is the bond equivalent yield on the T-bill?
4.86%
4.92%
4.98%
5.14%
None of the above
The T-bill rate quoted by the Federal Reserve banks is the
bank discount rate.
the true rate.
effective annual rate.
bond equivalent rate.
None of the above.
A dealer is quoting a 180-day T-Bill with a face value of $10,000 that is quoted at 3.75 bid, 3.60 ask. This bill can be bought at ________ or can be sold at ________.
$9,879.23; $9,864.36
$9,864.36; $9,859.23
$9,820.00; $9,812.50
$9,802.50; $9,787.50
None of the above.
[Bond Markets]
You purchase a Treasury inflation-protected note with an original principal amount of $1,000,000 and a 2.8 percent annual coupon (paid semiannually). What will the first coupon payment be if the semiannual inflation over the first six months is 1.2%?
$14,168
$14,000
$28,336
$28,000
None of the above
For a taxpayer in the 15% marginal tax bracket, a 15-year municipal bond currently yielding 6.2% would offer an equivalent taxable yield of:
6.2%.
5.27%.
8.32%.
7.29%.
None of the above.
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