Week 10 Financial Economics Class Problems by J. K. Dietrich - Prof. John Dietrich, Assignments of Capital Markets Regulation

Download Week 10 Financial Economics Class Problems by J. K. Dietrich - Prof. John Dietrich and more Assignments Capital Markets Regulation in PDF only on Docsity! 524 Week 10 Class Problems FBE 524 Class Problems J. K. Dietrich Week 10 – October 26, 2005 (1) How much does it cost to buy $10 million face value in T-Bills maturing on January 26, 2006? (2) How much could you sell $25 million maturing on November 25, 2005, T-Bills for and when would you get your money? (3) What is the asked yield for the T-Bill maturing on February 23, 2006 and show how to calculate this yield using data from the Wall Street Journal? (4) If you invested $10 million at yesterday’s rate in certificates of deposits in Money Rates table in the Wall Street Journal, how much interest (in dollars) would you earn in the next six months? (5) You have an accepted sight-draft on a well-known bank dated in 45 days with a face amount of $15 million: how much money can you raise by discounting this issue at current rates?