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queensnowflake32
15.07.2019 •
Business
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million treasury bill that currently sells at 93.375 percent of its face value and is 65 days from maturity?
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Ответ:
Discount yield :
IT – bill, dry = (($ 1 million - $ 973,750) / $ 1 million) (360 / 65) = 14.538%
Bond equivalent yield : IT – bill, bey = (($ 1 million - $ 973,750) / $973,750) (365 / 65) = 15.138%
EAR:
EAR = (1 + 0.15138 / (365 / 65)) 365 / 65 – 1 = 16.111%
Ответ:
Internal rate of return = 15.68% (Approx)
Explanation:
Given:
Initial cost = $77,600
Annual cash flows = $17,680
Number of year = 8 year
Find:
Internal rate of return
Computation:
77,600 = 17,680/(1+x)¹+17,680/(1+x)²+17,680/(1+x)³+17,680/(1+x)⁴+17,680/(1+x)⁵+17,680/(1+x)⁶+17,680/(1+x)⁷+17,680/(1+x)⁸
Internal rate of return = 15.68% (Approx)