The current discount yield (dy) pa for 90, 180, 270 day T Bills are 2%, 4% and
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Question:
The current discount yield (dy) pa for 90, 180, 270 day T Bills are 2%, 4% and 6% respectively.
1. Calculate the implied 90 day forward rates due in 3 and 6 months.
2. Detail your transactions and their cashflows to make riskless profits if the 90 day F. Bill due in 180 days is trading at 8% dy pa.
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
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