Ask Question
28 April, 17:26

suppose that a commercial bank wants to buy treasury bills. these instruments pay $500 in one year and are currently selling for 5012. what is the the yield to maturity

+2
Answers (1)
  1. 28 April, 19:44
    0
    9.98%

    Explanation:

    YTM is the estimated return expected from an investment held until its maturity. it is a long term yield which is expressed in annual term

    Annual Payment = $500

    Current price = $5,012

    Yield to maturity = (Annual payment / Current price) x 100

    Yield to maturity = ($500 / $5,012) x 100

    Yield to maturity = 0.0998

    Yield to maturity = 9.98%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “suppose that a commercial bank wants to buy treasury bills. these instruments pay $500 in one year and are currently selling for 5012. what ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers