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# 1. T-bill Yield Assume an investor purchased a six month T-bill

### Customer Question

1. T-bill Yield Assume an investor purchased a six month T-bill with a \$10,000 par value for \$9,000 and sold it 90 days later for \$9,100. What is the yield?

2. T-bill Discount Newly issued three-month T-bills with a par value of \$10,000 sold for \$9,700.
Compute the T-bill discount.

3. Commercial Paper Yield Assume an investor purchased six-month commercial paper with a face value of \$1 million for \$940,000. What is the yield?

4. Repurchase Agreement Stanford Corporation arranged a repurchase agreement in which it purchased securities for \$4.9 million and will sell the securities back for \$5 million in 40 days. What is the yield (or repo rate) to Stanford Corporation?

5. T-bill Yield You paid \$98,000 for a \$100,000 T-bill maturing in 120 days. If you hold it until maturity, what is the T-bill yield? What is the T-bill discount?

6. T-bill Yield The Treasury is selling 91-day T-bills with a face value of \$10,000 for \$8,800. If the investor holds them until maturity, calculate the yield.
10. Global Interaction of Bond Yields if bond yields in Japan rise, how might U.S. bond yields be affected? Why?

16. Event Risk An insurance company purchased bonds issued by Hartnett Company two years ago. Today, Hartnett Company has begun to issue junk bonds and is using the funds to repurchase most of its existing stock. Why might the market value of those bonds held by the insurance company be affected by this action?
Submitted: 5 years ago.
Category: Homework
Expert:  Manal Elkhoshkhany replied 5 years ago.

Thank you for requesting me, but for future posts, please remember to type "For BusinessTutor" at the beginning of the post.

Thank you

Customer: replied 5 years ago.

Sorry for the late response, in a class seminar. Tonight or I can settle for tomorrow morning.

Thanks

Faye

Expert:  Manal Elkhoshkhany replied 5 years ago.

That is ok, but Faye the post is very underpriced. Please increase your offer, or divide your questions to separate posts (2 questions per post). Or you can offer a bonus

The minimum per question should be at least \$5

Thank you

Customer: replied 5 years ago.

The price is \$30.00 right? so just answer 6 questions.

Thanks

Faye

Expert:  Manal Elkhoshkhany replied 5 years ago.
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