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amandajennings01
24.06.2020 •
Business
Calculate the effective annual interest rate for the following: a. A 3-month T-bill selling at $97,270 with par value $100,000. (Round your answers to 2 decimal places.) b. A 13% coupon bond selling at par and paying coupons semiannually. (Round your answers to 2 decimal places.)
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Ответ:
(a) The effective annual interest rate for a 3-month T-bill selling at $97,270 with par value $100,000 is 11.71%
(b) The effective annual interest rate for a 13% coupon bond selling at par and paying coupons semiannually is 13.42%
Explanation:
(a) A 3-month T-bill selling at $97,270 with par value $100,000
EAR =![[par value /price]^n-1}](/tpl/images/0692/9750/52f9e.png)
n = 3 months or 12/3 = 4 times in a year
=![[100,000/97,270]^4 - 1](/tpl/images/0692/9750/29a5e.png)
=![[1.028066]^4 -1](/tpl/images/0692/9750/7d154.png)
= 1.1171 - 1
= .1171 or 11.71%
b) EAR(coupon bond) =![[1+.13/2]^2 -1](/tpl/images/0692/9750/826ae.png)
=![[1+.065]^2 -1](/tpl/images/0692/9750/fd0aa.png)
=![[1.065]^2 -1](/tpl/images/0692/9750/8f56d.png)
= 1.1342 - 1
= .1342 or 13.42%
Ответ:
Civil Service administrator.
Community development worker.
Environmental manager.