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NEW QUESTION: 1
A US treasury bill with 90 days to maturity and a face value of $100 is priced at $98. What is the annual bond-equivalent yield on this treasury bill?
A. 8.16%
B. 8.00%
C. 8.11%
D. 8.28%
Answer: D
Explanation:
Explanation
The bond equivalent yield for a treasury bill can be calculated as [(Future value - Present value)/Present value x 365/days to maturity]. In this case this works out to ($100-$98)/$98 * 365/90 = 8.28%
[Why do we use 365 days and not 360? And is there a different way to calculate treasury bill yields?
The answer to this question is that there are alternate ways to calculate these yields. For the exam, I would suggest that you calculate according to one method, see if you get an answer that matches, and pick that. I found the below on the NY Fed's website - a very clear example: (http://newyorkfed.org/aboutthefed/fedpoint/fed28.html) The Discount Yield Method The following formula is used to determine the discount yield for T-bills that have three- or six-month maturities:
Discount yield = [(FV - PP)/FV] * [360/M]
FV = face value
PP = purchase price
M = maturity of bill. For a three-month T-bill (13 weeks) use 91, and for a six-month T-bill (26 weeks) use
182
360 = the number of days used by banks to determine short-term interest rates (the investment yield method is based on a calendar year: 365 days, or 366 in leap years).
Example
What is the discount yield for a 182-day T-bill, auctioned at an average price of $9,659.30 per $10,000 face value?
Discount yield = [(FV - PP)/FV] * [360/M]
FV = $10,000 PP = $9,659.30 M = 182
Discount yield = [(10,000) - (9,659.30)] / (10,000) * [360/182]
Discount yield = [340.7 / 10,000] * [1.978022]
Discount yield = .0673912 = 6.74%
For the 13-week bill, the same formula would be used, dividing 360 by a maturity of 91 days rather than 182 days.
The Investment Yield Method
When comparing the return on investment in T-bills to other short-term investment options, the investment yield method can be used. This yield is alternatively called the bond equivalent yield, the coupon equivalent rate, the effective yield and the interest yield.
The following formula is used to calculate the investment yield for T-bills that have three- or six-month maturities:
Investment yield = [(FV - PP)/PP] * [365 or 366/M]
Example
What is the investment yield of a 182-day T-bill, auctioned at an average price of $9,659.30 per $10,000 face value?
Investment yield = [(FV - PP)/PP] * [365/M]
FV = $10,000 PP = $9,659.30 M = 182
Investment yield = [(10,000 - 9,659.30) / (9,659.30)] * [365/182]
Investment yield = [340.70] / 9,659.30] * [2.0054945]
Investment yield = .0707372 = 7.07%
For the 13-week bill, the same formula can be used, dividing 365 (or 366) by a maturity of 91 days.

NEW QUESTION: 2

A. Option A
B. Option B
C. Option C
D. Option D
Answer: D

NEW QUESTION: 3
[DRAG And DROP]
A company has an Active Directory Domain Services (AD DS) domain and a SharePoint environment.
The SharePoint environment includes a team site for each department. All domain users have Read
permissions on the root site. Currently only Human Resources department members have access to the
Human Resources team site. You have the following requirements for the Human Resources site:
.Employees who are not members of the Human Resources department can view only content that is not
marked as sensitive.
.Human Resources department members can view all content. You need to configure permissions for the
Human Resources site.
Which three actions should you perform in sequence? (To answer, move the appropriate actions from the
list of actions to the and arrange them in the correct order.)
A. Configure the sensitive content in the Human Resources site to break inheritance from the parent site.
B. Configure the Human Resources site to inherit permissions from the root site.
C. Assign the Limited Access permission level on the sensitive content to all users who are not members of the Human Resources department.
D. Remove the Read permission level on the sensitive content from users who are not members of the Human Resources department.
E. Assign the Limited Access permission level on the Human Resources site to users who are not members of the Human Resources department.
Answer: A,B,C