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Bill Yates, a private investor, purchases a six-month (182-day) T-bill with a $10,000 par value for $9,700. If Bill Yates holds the Treasury bill to maturity, his annualized yield is ________ percent.

Respuesta :

Answer:

Explanation:

Annualized Yield = (Par Value - Price)/ Price * Number of days /365 = (10,000 -9,700)/9,700 * 182/365 = 0.0309*0.4986= 0.0154 = 1.54%

If Bill Yates holds the Treasury bill to maturity, his annualized yield is 1.54% percent.

batolisis

Answer:

6.2%

Explanation:

Annualized yield is the total dividend which an investment made yields in a year and it is a good economic indicator on how profitable an investment is in the near future and also beyond that .

To calculate the percentage of the Annualized yield

Annualized yield = [tex]\frac{PARvalue - PURCHASE PRICE}{PURCHASE PRICE}[/tex] * [tex]\frac{365}{N}[/tex]

N = time for investment to maturity = 182

PAR value = $10000

Purchase price = $9700

Annualized yield =  [tex]\frac{10000 - 9700}{9700}[/tex] * [tex]\frac{365}{182}[/tex] = 0.0620 = 6.2%

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