Treasury bill

Related BrainMass Solutions

• We are currently bidding on Treasury bills and have determined that we must have a 5% return for a $1,000 T-Bill that will mature in one year.

  How much would we be willing to bid on the Treasury bill? If we are bidding on a 13 weeks Treasury bill with a 1% return and a 26 weeks Treasury bill with a 2% return for a $1,000 T-bill, how much would we be willing to bid on the Treasury bills?

• Treasury Bill and Interest Rates

  (b) What will be the price of the Treasury bill?

• Treasury Bills Returns and Inflation

  Average Treasury bill return percent Average inflation percent Requirement 2: Calculate the standard deviation of Treasury bill returns and inflation over this period.

• Calculations of Discount and Investment Rates

  If we purchase the bill for $998, what are the two rates? If we purchase a 91 day Treasury bill for $995, what are the two rates? (Show all work/calculations/formulas.) To calculate the discount rate on a Treasury Bill you should use this formula.

• Decrease in reserve requirements

  Treasury bill rates----------> reduce Treasury bill rates e. the bank prime rate -------> reduce the bank prime rate Explain your answers.

• Percival Hygiene Portfolio Combinations Risk and Return

  The Treasury bill yield is 6 percent.

• A Treasury bill purchased in December 2007 has 34 days until maturity and a bank yield of 4.24 percent. What is the price of the bill as a percentage of face value?

  59383 Treasury Bill Pricing Purchased Treasury Bills A Treasury bill purchased in December 2007 has 34 days until maturity and a bank yield of 4.24 percent. What is the price of the bill as a percentage of face value?

• Competitive Bids and T Bills

  When the Treasury receives non-competitive bids, it must allocate those separately from the auction. Since it received 750 mill in non-competitive bids, it has 2500 - 750 = 1750 mill (1.75 bill) left for the auction.

• Returns

  Suppose that over the long run, the risk-premium on stocks relative to Treasury bills has been 7.6 percent in the United States. Suppose also that the current Treasury bill yield is 1.5%, but the historical average return on Treasury bills is 4.1%.