You are purchasing a $2,000,000.00 U.S. Treasury Bill that matures in 110 days and is quoted as a 1.24% discount rate. How much interest will you earn if you hold this T-bill to maturity?
You have a 12.250% $21,000 bond maturing August 26, 2033.
You purchase the bond to settle August 26, 2025 when yields are 7.500%
The purchase price of this bond is thus
You buy a 7.750% semi-annual bond maturing in exactly 13 years at 102.6050. You hold the bond for 9 years. Then you sell the bond at 104.9936.
Your holding period yield on this investment is
We expect a return on the market of 8.200% and a risk free rate of 3.600%. Using data over the past five years, we measure the rate of return on Galifre Educational as 16.846% with a beta of 1.87. Therefore we calculate Jensen's Alpha on Galifre Educational as
: %
and the abnormal return as
: %