Questions from Financial Markets


Q: The price of $8,000 face value commercial paper is

The price of $8,000 face value commercial paper is $7,930. If the annualized discount rate is 4%, when will the paper mature? If the annualized investment rate % is 4%, when will the paper mature?

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Q: How much would you pay for a Treasury bill that matures in

How much would you pay for a Treasury bill that matures in one year and pays $10,000 if you require a 3% discount rate?

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Q: The annualized discount rate on a particular money market instrument is 3

The annualized discount rate on a particular money market instrument is 3.75%. The face value is $200,000, and it matures in 51 days. What is its price? What would be the price if it had 71 days to ma...

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Q: If you suspect that a company will go bankrupt next year,

If you suspect that a company will go bankrupt next year, which would you rather hold, bonds issued by the company or equities issued by the company? Why?

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Q: The annualized yield is 3% for 91-day commercial paper

The annualized yield is 3% for 91-day commercial paper and 3.5% for 182-day commercial paper. What is the expected 91-day commercial paper rate 91 days from now?

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Q: What would be your annualized discount rate % and your annualized investment

What would be your annualized discount rate % and your annualized investment rate % on the purchase of a 182-day Treasury bill for $4,925 that pays $5,000 at maturity?

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Q: What are the annualized discount rate % and your annualized investment rate

What are the annualized discount rate % and your annualized investment rate % on a Treasury bill that you purchase for $9,940 that will mature in 91 days for $10,000?

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Q: What is the annualized discount and investment rate % on a Treasury

What is the annualized discount and investment rate % on a Treasury bill that you purchase for $9,900 that will mature in 91 days for $10,000?

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Q: The price of 182-day commercial paper is $7,

The price of 182-day commercial paper is $7,840. If the annualized investment rate is 4.093%, what will the paper pay at maturity?

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Q: How much would you pay for a Treasury bill that matures in

How much would you pay for a Treasury bill that matures in 182 days and pays $10,000 if you require a 1.8% discount rate?

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