A Treasury bill with a par value of $100,000 due three months from now is selling today for $97,087 with an effective annual yield of A) 12.40%. B) 12.55%. C) 12.62%. D) 12.68%. E) None of the options are correct.

Answers

Answer 1

The effective annual yield of a treasury bill is equivalent to 12.55%.

Option B is the correct answer.

What is the treasury bill?

The treasury bill is the trading instrument that is issued in the money market by the government.

Given values:

Par value: $100,000

Future value: $97,087

Number of years from now: 3 years

Step-1 Computation of interest rate of treasury bill:

[tex]\rm\ Interest \rm\ rate \rm\ on\rm\ treasury \rm\ bill=\frac{\rm\ Par \rm\ value - \rm\ Future \rm\ value}{\rm\ Future \rm\ value} \\\rm\ Interest \rm\ rate \rm\ on\rm\ treasury \rm\ bill=\frac{\$100,000-\$97,087}{\$97,087} \\\rm\ Interest \rm\ rate \rm\ on\rm\ treasury \rm\ bill=0.03[/tex]

Step-2 Computation of equivalent yield the bill:

[tex]\rm\ Equivalent \rm\ annual \rm\ yield =(\rm\ 1+ \rm\ interest \rm\ rate)^{\rm\ Number \rm\ of \rm\ years} - 1\\\rm\ Equivalent \rm\ annual \rm\ yield=(1+0.03)^{4} -1\\\rm\ Equivalent \rm\ annual \rm\ yield=1.01255-1\\\rm\ Equivalent \rm\ annual \rm\ yield=0.01255[/tex]

Therefore, 12.55% is the equivalent yield on the treasury bill.

Learn more about the equivalent yield in the related link:

https://brainly.com/question/21275322

#SPJ1


Related Questions

Any purchased materials that will go into the finished product are first recorded in the.

Answers

Any material purchased will be recorded in the Raw material inventory account. The option for the first blank is raw and second blank is material.

What is Inventory Account?

Inventory Account refers to the account which records all the transactions related to the stock. It records the purchased of the stocks, work in progress, closing stock, opening stock etc.

The complete question is attached below.

The raw material inventory account is where all materials that will be used to create the final product are first registered.

Learn more about raw material here:

https://brainly.com/question/13376768

#SPJ1

how did the strategic alliance between hp and dreamworks animation skg affect hp?

Answers

The strategic alliance between HP and Dreamworks animation skg affected HP because its enabled the firm to compete head on with Cisco's videoconferencing solution.

What is a strategic alliance?

This refers to the agreement between two firms who are pursuing a set of objectives while remaining an independent organizations

Hence, the strategic alliance between the two firms impacted one as its to compete head on with Cisco's videoconferencing solution.

Therefore, the Option B is correct.

Missing options "A. It helped HP pursue a taper integration strategy. B. It enabled HP to compete head on with Cisco's videoconferencing solution. C. It resulted in depreciation of HP's shareholder value. D. It failed because HP lacked the expertise in selecting and integrating technology acquisitions"

Read more about strategic alliance

brainly.com/question/4467038

#SPJ12

You are the administrator for a small company, and you need to add a new group of users to the system. The group's name is sales. Which command accomplishes this task?

Answers

The command that will allow you to add a new group of users to the system is "groupadd sales".

What is a command?

This refers to the specific order from a user to the operating system to perform a service.

Hence, as an administrator, one will be able to add a new group of users to the system through the use of the command "groupadd sales".

Read more about command

brainly.com/question/25243683

#SPJ12

Management should select the depreciation method that

Answers

When it comes to selecting a depreciation method, management should select on that D. best measures the plant asset's contribution to revenue over its useful life.

Which depreciation method should be picked?

Different companies use the same equipment in different ways and for that reason, depreciation cannot be the same.

The company needs to pick a depreciation method that takes the contribution of the equipment to its specific type of business and the revenue that is brought in.

Options include:

a. has been used most often in the past by the company.

b. best measures the plant asset's market value over its useful life.

c. is easiest to apply.

d. best measures the plant asset's contribution to revenue over its useful life.

Find out more on depreciation methods at https://brainly.com/question/18724238.

#SPJ12

In june, a client buys 100 shares of xyz corporation at $27 per share and writes an xyz october 30 call at a $3 premium. the trade is executed in a cash account. what is the breakeven point for the writer

Answers

The breakeven point for the writer on the share trading is equal to $24.

The third option is the correct answer.

What is a breakeven point?

A breakeven point is a situation where the company earns no profit and no loss amount in the Cost-Volume-Profit (CVP) analysis.

Given values:

Share price: $27

Premium per share: $3

Computation of breakeven point:

[tex]\rm\ Breakeven \rm\ point = \rm\ Share \rm\ price - \rm\ Premium \rm\ per \rm\ share\\\rm\ Breakeven \rm\ point = \$27 - \$3\\\rm\ Breakeven \rm\ point = \$24[/tex]

Question's missing part:

The options are as follows:

1) $33

2) $30

3) $24

4) $33

Therefore, the point where the shares are breakeven is $24.

Learn more about the breakeven point in the related link:

https://brainly.com/question/10190285

#SPJ1

when effective leaders hear others complaining about a problem, which action would they most likely take?

Answers

When effective leaders hear others complaining about a problem, THE action would they most likely take is: To try to learn how big the problem really is.

Who is a leader?

A leader is person that possess a leadership skills  and help to direct and lead the people that are under him/her.

An effective Leaders does not  ignore problems but they  tend to  learn how big the situation  and try to figure and solve it.

Therefore the action would they most likely take is: To try to learn how big the problem really is.

Learn more about leader here:https://brainly.com/question/1232764

#SPJ11

having a high debt-to-income ratio or defaulting on your loan can bring down your credit score. how can a low credit score on your credit report affect you?

Answers

A low credit score on your credit report can affect you as it will lead to higher interest rates.

What is a credit report?

It should be noted that a credit report is the record of the repayment history of a borrower.

In this case, a credit score on your credit report can affect you as it will lead to higher interest rates as well as fewer loan options.

Learn more about credit reports on:

brainly.com/question/9913263

#SPJ11

As a recent college graduate, Eli started working for an export trading company. His job has already taken him around the globe on several occasions. He was amazed to see the difference in working conditions in the developing nations he visited, as opposed to similar operations in the United States. The expectations of workers were not the same. Eli's experience is an example of

Answers

Eli's experience of the differences in the working conditions in the developing nations with the United States is an example of (B) social responsibility differences between similar firms, but in different countries.

What is corporate social responsibility?

Corporate social responsibility refers to the approach adopted by entities to respond to social justice in their environments.

Entities engage in corporate social responsibility in four major areas:

Environmental ResponsibilityEthical ResponsibilityPhilanthropic ResponsibilityEconomic Responsibility.

Question Completion with Answer Options:

(A) corporate philanthropy differences in different countries.

(B) social responsibility differences between similar firms, but in different countries.

(C) the difference in corporate social initiatives in foreign nations.

(D) the need for whistleblowers abroad.

Thus, Eli's experience of the differences in the working conditions in the developing nations with the United States is an example of (B) social responsibility differences between similar firms, but in different countries.

Learn more about corporate social responsibilities at https://brainly.com/question/1373962

#SPJ12

This year you have decided to focus your efforts on marketing to employer group plans. One employer provides you with a list of their retirees and asks you to contact them to explain the characteristics of the plan they have selected. What should you do?.

Answers

The inference shows that the thing that should be done is to go ahead and call them.

What is an inference?

It should be noted that an inference simply means the conclusion that. an be deduced based on the information given.

In this case, since the employer provides you with a list of their retirees and asks you to contact them to explain the characteristics of the plan they have selected, it is important to call them.

Learn more about inference on:

brainly.com/question/25280941

#SPJ1


As you get older, a Target Date Fund will adjust
by...
a.
Slightly decreasing your stocks and
holding your bonds the same.
b.
Decreasing your stocks and increasing
your bonds.
c.
Increasing your stocks and decreasing
your bonds.
d.
Holding your stocks the same and
slightly increasing your bonds.

Answers

The target Date fund will adjust by holding your stocks the same and slightly increasing your bonds. Therefore the correct option is (D).

What is Target-date funds ?

Target-date funds are the funds which increases the assets for the specific time period. It is also known as exchange traded funds. Thus it is an life cycle fund wherein the allocation of the portfolio gradually becomes more cautious.

The Target Date fund will adjust by holding your stocks the same and slightly increasing your bonds. Therefore the correct option is (D).

Learn more about  target Date fund  here:

https://brainly.com/question/14389226

#SPJ1

What are the three methods of calculating balance charges on credit cards?.

Answers

The three methods of calculating balance charges on credit cards are:

previous balance method.average daily balance method (excluding and including newly billed purchases.adjusted balance method.

How can we calculate a credit card balance ?

Calculation of the credit balance can be done generally by dividing  the  average daily balance totals by the total number of days in the billing cycle.

Then the result is then  multiplied by the monthly interest  rate, however all the listed method can as well be used.

Learn more aboutcredit cards at:

https://brainly.com/question/6872962

#SPJ1

A physical good, service, or idea that satisfies a want or need is called a(n):

Answers

A physical good, service, or idea that satisfies a want or need is called a product.

What is a product?

Products are objects or produced goods made available for consumers for consumption.

They are known as tangible goods that can be seen and touched. They are produced in order to satisfy human need and want.

Learn more on Products here: https://brainly.com/question/25922327

#SPJ12

_______ can run and climb stairs when holding someones hand or a rail. Classroom summary. Screening tools. Gross motor. Infants. Preschoolers. Toddlers. I will mark brianlest

Answers

Answer:

preschoolers

Explanation:

At this stage their balance has improved, they are more coordinated, and tend to focus more on where they are going (steps taken)

In a(n) ______, occupations devoted to the teaching, generation, or dissemination of ideas are common, and jobs in such fields as advertising, human resources, and computer information systems are typical.

Answers

In a post-industrial society, occupations devoted to the teaching, generation, or dissemination of ideas are common, and jobs in such fields as advertising, human resources, and computer information systems are typical.

What is a post-industrial society?

A post-industrial society is a society marked through a transition from a manufacturing-primarily based completely monetary device to a carrier-based financial system, a transition this is additionally associated with the following societal restructuring.

One of the most prominent examples of put up-commercial societies is the US, which is the primary US to have had extra than fifty percent of its employees inside the carrier enterprise instead of the production industry.

Learn more about post-industrial society here https://brainly.com/question/2241769

#SPJ10

Rachel receives employer-provided health insurance. The employer's cost of the health insurance is $6,000 annually. What is her employer's after-tax cost of providing the health insurance, assuming that the employer's marginal tax rate is 21 percent and the employer is profitable

Answers

Based on the cost of Rachel's health insurance to the employer, the employer's after-tax cost is $4,740.

How much is the health insurance after-tax cost?

This can be found as:

= Before tax cost of health insurance x (1  - marginal tax rate)

Solving gives:

= 6,000 x (1 - 21%)

= 6,000 x 0.79

= $4,740

Find out more on after-tax costs at https://brainly.com/question/15052097.

#SPJ1

a simple contract is defined as an informal contract made without the formalities of a seal. true false

Answers

It is true that a simple contract is defined as an informal contract made without the formalities of a seal.

What is simple contract?

This is a contract between two parties which could be oral or written. It is to be noted that parties to simple contract have intended to be legally bound by it.

Some of the examples of simple contracts are:

Employment contractVendor and suppliers agreementSoftware license agreement.

Learn more about simple contract here: https://brainly.com/question/5746834

#SPJ11

Examine the table comparing auto collision insurance
deductibles and premiums for three drivers.
Why does driver 3 most likely pay a higher monthly premium than drivers 1 and 2?
The insurance company views driver 3 as a risk
because of accident history and age.
The insurance company believes that driver 3 is
less likely to pay bills on time.
Driver 3 voluntarily pays a higher premium in order
to have a lower deductible.
Driver 3 voluntarily pays a higher premium to
receive greater coverage.

Answers

Driver 3 most likely pay a higher monthly premium than drivers 1 and 2 because A. The insurance company views driver 3 as a risk

because of accident history and age.

Why will an individual pay a higher premium?

It should be noted that a monthly premium will reflect the added risk of multiple drivers using a vehicle.

Also, teenagers or young people generally pay higher premiums because it's believed that there more prone to accident.

Therefore, driver 3 most likely pay a higher monthly premium than drivers 1 and 2 because the insurance company views driver 3 as a risk

because of accident history and age

Learn more about insurance on:

brainly.com/question/25855858

#SPJ1

Answer: A

Explanation:

The insurance company views driver 3 as a risk because of accident history and age.

Which type of market is the one in which a person buys stock in the fast-food company that makes their favorite breakfast sandwich?

a. Product market
b. Factor market
c. Financial market
d.Closed market

Answers

Answer:

C. Financial market

Explanation:

Anything that has to do with stocks is part of the Financial Market.

Answer: C: Financial Market

Explanation:

norma inc. uses the perpetual inventory system. when the company records a sale, it should make entries to:

Answers

The fact that Norma Inc. uses a perpetual inventory system means that when a sale is recorded, the company should:

b. decrease an asset and increase an expense.c. increase an asset and increase revenue.

What happens when a sale is made?

The revenue account should be increased because a sale brings money into the business. Cash or Account Receivables should also increase depending on is the sale was a cash or credit sale.

Cost of goods sold would increase as well and it is an expense. The asset of inventory would decrease to show that there is less inventory on account of the sale.

Options for this question are:

a. decrease an asset and decrease revenue

b. decrease an asset and increase an expense

c. increase an asset and increase revenue

d. increase an asset and decrease an expense

Find out more on the perpetual inventory system at https://brainly.com/question/25014592.

#SPJ12

Consider two processes. If both versions create the same benefit, but one costs more than the other, the higher-cost version is less ________ than the lower-cost version.

Answers

Consider two processes. If both versions create the same benefit, but one costs more than the other, the higher-cost version is less Efficient than the lower-cost version.

What is Process Quality?

Process Quality = measured in two dimensions: process effectiveness and process efficiency

Effective Business Process = enables the organization to accomplish its strategy. ex: investigating whether 3D printing will help accomplish the strategy of having the largest selection of parts in the industry

Efficiency Business Process = the ratio of benefits to costs. ex: consider two versions that create the same benefit, but one costs more than the other does, meaning the higher-cost version is less efficient than the lower-cost version/if both versions cost the same, but one generates less benefit than the other, then the lower-benefit one is less efficient.

Learn more about Efficiency Business Process on:

brainly.com/question/18559769

#SPJ4

Why shouldn’t applicants to job openings send their cover letter as an attachment in an e-mail? when would it be acceptable to send a cover letter as an attachment?.

Answers

The employer may restrict emails that contain attachments. This can be a function of their email spam or junk mail filtering system.

What is a cover letter in an email?

An email cover letter is a quick email that includes some personal information and the justification for delivering your resume.

Unless an employer specifically requests that you include them in the email body, send your cover letter and resume as separate attachments. Create a sincere cover letter every time, and attach it to the email.

Hence, the significance of the e-mail is aforementioned.

Learn more about on e-mail, here:

https://brainly.com/question/15710969

#SPJ1

After World War II, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible. As a result, most of the noncommunist economies in the world Multiple Choice failed. stagnated. quickly matched the U.S. economy. faced high inflation rates. grew significantly.

Answers

Most of the non-communist economies in the world grew significantly as a result of the U.S. infusion of ideal of capitalism.

What is the ideal of capitalism?

The ideal involves the spread of free market practices that allows citizen to determine the demand and supply in market with little or no government intervention.

Hence, the non-communist economies in the world grew significantly as a result of the U.S. infusion of ideal of capitalism.

Therefore, the Option D is correct.

Read more about capitalism

brainly.com/question/25879591

#SPJ12

A tax credit of $5000 for a person in a 35% tax bracket would reduce a person's taxes owed by?

Answers

A tax credit of $5000 for a person in a 35% tax bracket would reduce a person's taxes owed by $1,750.

What is tax credit?

Tax credit can be defined as the money deducted from the tax you owe.

Using this formula

Tax reduction=Amount owe- Tax bracket percentage

Let plug in  the formula

Tax reduction=$5,000×35%

Tax reduction=$1,750

Therefore a tax credit of $5000 for a person in a 35% tax bracket would reduce a person's taxes owed by $1,750.

Learn more about tax credit here:https://brainly.com/question/3350870

#SPJ1

What type of analytics would take past purchasing data as inputs into a model and then recommend the best pricing strategy for maximizing revenue

Answers

"Prescriptive Analysis" would take past purchasing data as inputs into a model and then recommend the best pricing strategy for maximising revenue.

What is Prescriptive Analysis?

Prescriptive analytics makes recommendations about potential outcomes and produces actions that are likely to maximise important business KPIs.

Prescriptive Analytics is based on:

Optimisation which helps in achieving the best outcomesStochastic optimisation which helps in how to achieve best outcomes and identify data uncertainties to make best results.

The types of analytics are-

Descriptive, Predictive and Prescriptive analytics.

Learn more about Prescriptive Analytics, here

https://brainly.com/question/27833447

#SPJ4

Tell me about a time you tried to sell a customer, teammate, or someone else on an idea, product, or service. describe the situation, your actions, and the outcome
will give brainliest answer
does not have to be work related

Answers

To try to sell a product or idea we must use valid arguments and connect attitudinally with the people to whom we offer them.

What is a sale?

A sale is a transaction in which a product or service is exchanged for money.

What experiences do we have selling something?

One experience we have selling something was when we built some wooden toys to sell to my friends and family as Christmas souvenirs.

For them I had to call them and send them an email with pictures of the toys. In general, we highlighted the most striking features of the toys and had a positive attitude to convince buyers.

Learn more about sales in: https://brainly.com/question/15375944

#SPJ1

Shortly after World War II, John Jackson developed and began selling a machine lubricant that was superior to anything currently on the market. While demand kept up with production at first, several strong competitors added new products and he soon had to hire a sales force to sell excess product to manufacturing companies in the area. This is an example of marketing behavior that would occur during the ________ era of U.S. business history.

Answers

The given scenario is an example of marketing behavior that would occur during the sales era of U.S. business history.

What is Marketing?

This refers to the creation of awareness for a particular product by making promotions.

Hence, we can see that based on the given scenario of the machine lubricant that was sold after the WWII, there was the introduction of strong competitors and a sales force had to be hired and this is an example of marketing behavior that would occur during the sales era of U.S. business history.

Read more about marketing here:

https://brainly.com/question/25754149

#SPJ12

The market price of airline flights increased recently. Some economists suggest that the price increased because jet fuel is much more expensive than before. As a result, they believe that, in the market for flights: a. demand decreased. b. supply increased. c. demand increased. d. supply decreased.

Answers

The economists evaluating the price increase in airline flight price most likely believe that a. demand decreased.

Why do economists believe that demand decreased?

The law of demand says that people will demand more of a good when the price is lower and vice versa.

This means that with the rise in the market price of airline flights, there will be a drop in demand.

Find out more on the law of demand at https://brainly.com/question/24500422.

#SPJ12

URGENT! HELP NOW PLEASE! If it was possible for one company to gain ownership control all of the uranium processing plants in the US, then O they will strive to reach efficiencies only they know how to make. Othat firm could set up barriers to entry to discourage competition. Ogovernment will deregulate to ensure the company's monopoly O the factors of market demand and supply will set the price.​

Answers

If it was possible for one company to gain ownership control of all the uranium processing plants in the US, then that firm could set up barriers to entry to discourage competition.

What are barriers to entry?

When there are difficulties in entry in the market for the sellers in a particular industry due to the dominant position of a firm, and other added factors, then such factors are known as the barriers to entry.

Hence, option B holds true regarding barriers to entry.

Learn more about barriers to entry here:

https://brainly.com/question/9560934

#SPJ1

which costs are relevant for equipment replacement decisions?

Answers

The costs  that are relevant for equipment replacement decisions are:

Unit-level costsBatch-level costsProduct-level costs

What is Relevant cost?

Relevant cost can be defined as those cost that cannot be neglected   because they are important during decision making process which is why this cost are known as differential costs.

Cost that are relevant for equipment replacement decisions are:

Unit-level costsBatch-level costsProduct-level costs

Learn more about relevant cost here:https://brainly.com/question/20738461

#SPJ11

Because a project requires resources, often from various areas, many projects cross ____ or other boundaries to achieve their unique purposes

Answers

Because a project requires resources, often from various areas, many projects cross-departmental or other boundaries to achieve their unique purposes. This is further explained below.

What is a department?

Generally, a specialized department inside a larger institution (governmental, academic, or commercial) focuses on one area of focus.

In conclusion, For many initiatives to succeed, it is necessary to pool resources from different departments or even other organizations.

Read more about departments

https://brainly.com/question/11539179

#SPJ12

Other Questions
What is the line that has a slope of -2/3 and passes through point -3,-1? What's your annual income if you're unemployed? when testing the temperature of catalase, why did the enzyme catalase work best at 37c? (select all that apply.) A compound has an empirical formula CH4S.What is its molecular formula, if its molarmass is 168 g/mol? Use the drawing tool(s) to form the correct answer on the provided graph.Consider the function given below.Plot this piecewise function on the provided graph.Drawing ToolsSelectPointOpen PointLine SegmentRayOy = -2;-10--5;Click on a tool to begin drawing.-87;-6-8 URGENTTT...A survey asks teachers and students whether they would like the new school mascot to be a pirate or a moose. This table shows the results: Please answer all three questions Pleaseeeeee tysmm Find the value of x in each case: Please use the graph to theleft to help you answer thisquestion.Which of the followingdescribes the DEPENDENTvariable?A. the group in which the conditionswere not changedB. the variable that is changed by theperson doing the experiment andlocated on the x-axisC. the variable that is observed ormeasured by the experimenter andlocated on the y-axis9D. the observation that theexperimenter made that started theexperiment Question 4: 11 ptsElena wants to earn at least $180 a week to help her parents with bills. She determines thatshe can charge $15 an hour to babysit and can earn $10 an hour bagging groceries. She canonly work 13 hours per week. Write and graph a system of linear inequalities that shows thenumber of hours she can work so she can help her parents. Use x for the number of hoursbabysitting and y for the number of hours bagging groceries. This cycle is significantly affected by the extraction of fossil fuels. Photosynthesis is a major flux in this cycle. The weathering of rock is a major flux in this cycle. Transpiration is a major flux in this cycle. This cycle's largest reservoir is the atmosphere. This cycle's largest reservoir is ocean water. This cycle is affected by the release of detergents in treated wastewater. Nitrification is a major flux in this How would our interaction with the suns energy differ if our magnetosphere disappeared? please help asap!!!Rewrite the following equation as a function of x. Find y.Help me please:)) Which of the following excerpts from the passage best supports the author's claim that his education led to hisdiscontentment?O "My mistress, who had kindly commenced to instruct me, had, in compliance with the advice and direction of herhusband, not only ceased to instruct, but had set her face against my being instructed by any one else."O "I was now about twelve years old, and the thought of being a slave for life began to bear heavily upon my heart. Justabout this time, I got hold of a book entitled 'The Columbian Orator."O "They gave tongue to interesting thoughts of my own soul, which had frequently flashed through my mind, and diedaway for want of utterance Can you pls help to draw this sketch of interpretation of a square prism properly PLS HELP note of the crafts in India at the time of colonial rule, write about their usage and trade valuepls tell The graph of which function has an axis of symmetry at x = 3?f(x) = x2 + 3x + 1 On a coordinate plane, a parabola opens up. It goes through (negative 4, 5), has a vertex at (negative 1.75, 6.75), and goes through (1, 5).f(x) = x2 3x 3 On a coordinate plane, a parabola opens up. It goes through (negative 2, 7), has a vertex at (1.75, 5), and goes through (5, 7). ti l ngi Vit Nam ai gip gii bi ny nha bi 2 Which point on the number line represents the product (Negative 4) (negative 2) (negative 1)?A number line going from negative 10 to positive 10. Point A is negative 8, point B is negative 7, point C is 7, point D is 8.