Questions from Business Mathematics

Q: A $100,000, 91-day Province of Ontario

A $100,000, 91-day Province of Ontario Treasury bill was issued 37 days ago. What will be its purchase price today in order to yield the purchaser 1.55%?

Q: Calculate and compare the issue-date prices of $100,

Calculate and compare the issue-date prices of $100,000 face value commercial paper investments with 30-, 60-, and 90-day maturities, all priced to yield 1.5%.

Q: Calculate and compare the market values of a $100,000

Calculate and compare the market values of a $100,000 face value Government of Canada Treasury bill on dates that are 91 days, 61 days, 31 days, and one day before maturity. Assume that the rate of re...

Q: Jake purchased a $100,000 182-day T-

Jake purchased a $100,000 182-day T-bill discounted to yield 1.85%. When he sold it 30 days later, yields had dropped to 1.79%. How much did Jake earn?

Q: A $100,000, 90-day commercial paper certificate

A $100,000, 90-day commercial paper certificate issued by Wells Fargo Financial Canada was sold on its issue date for $99,250. What rate of return will it yield to the buyer?

Q: A shoe salesperson is paid the greater of $600 per week

A shoe salesperson is paid the greater of $600 per week or 11% of sales. 1. What are his earnings for a week in which sales are $5636? 2. At what volume of sales per week will he start to earn more fr...

Q: Debra paid $99,615 for a $100,000

Debra paid $99,615 for a $100,000 T-bill with 30 days remaining until maturity. What (annual) rate of interest will she earn?

Q: Calculate the periodic rate of interest if the nominal interest rate is

Calculate the periodic rate of interest if the nominal interest rate is 6% compounded: 1. monthly. 2. quarterly. 3. semiannually

Q: For a nominal rate of 5.9%, determine the compounding

For a nominal rate of 5.9%, determine the compounding frequency if the periodic interest rate is: 1. 2.95%. 2. 0.491 6 ¯ %. 3. 1.475%.

Q: What is the compounding frequency for a nominal rate of 4.

What is the compounding frequency for a nominal rate of 4.7% if the periodic interest rate is: 1. 1.175%? 2. 0.391 6 ¯ % ?