The discount rate is determined from the first part of the cap rate formula as the risk-free rate plus the risk premium and in the example above, would be 4.20% + 7% or 11.20%.

In order to calculate the price, you need to know the number of days until maturity and the prevailing interest rate. Take the number of days until the Treasury bill matures, and multiply it by ...

Treasury bills are secure, backed by U.S. government, with maturity terms from 4 weeks to 1 year. Pricing of T-bills uses a discount formula: [(days to maturity * interest rate) / 360]. Buy T ...

Adding the total amount of each trade gives us $9,825. After dividing that by the 100 shares purchased, we have a weighted average trade price of $98.25 per share.

Thinking about selling your business? There are several ways to calculate the selling price of a business — but not everyone agrees on what method is best. Here's a breakdown of the most popular ...

The simplest way to calculate revenue when volume price changes is to multiply the number of units sold at each price level. If you sell 10,000 widgets at $1.00 each, your revenue is $10,000.

Because you're buying a $1,000 Treasury bill instead of one for $100, multiply 99.25 by 10 to get the final price of $992.50. Keep in mind that the Treasury doesn't make separate interest payments ...