treasury securities


  • Treasury bills ( T-bills) - maturity within 1 year 
  • spot prices are quoted at a discount to the maturity face value 
  • treasury notes - between 1-10 years maturity 
  • treasury bonds - longer than 10 years maturity 
  • spot prices are at a yield to maturity 
  • intra- period rate of return )1+ annual rate of return = 1+ intra period rate of return; such that n=number of periods n a year 
  • According, annual rate of return = (1+ intraperiod rate of return)^ number of periods in a year-1

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