News

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 ...
Pricing of T-bills uses a discount formula: [(days to maturity * interest rate) ... To calculate the price, take 180 days and multiply by 1.5 to get 270. Then, divide by 360 to get 0.75, ...
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 ...
Let’s assume that we didn’t calculate the IRR of 57% as we did above and have no idea what the correct discount rate is. We can use Excel’s What-If calculator in this case.