Today, the US treasury issued three T-Bills, and they had issued a 1-year T-Bill a week Earlier.

4 week 13 week 26 week 52 weeks

Issued 6/21/16 6/21/16 6/21/16 6/21/16

Maturity Date 7/19/16 9/20/16 12/20/16 6/13/17

FV Per $100 100 100 100 100

Price per $100 99.980556 99.931750 99.79778 99.433778

1) Calculate the bank Discount rate for the 4-week and 52-week issues

A) 4 week 0.25%, 52 week 0.56% B) 4 week: 0.4% 52 week 0.27% C) 4 week 0.56%, 52 week 0.25% D) 4 week 0.27%, 52 week: 0.4%

2) Calculate bond equivalent yields for the 4-week and 52-week issues.

a) 4 week 0.2535%, 52 week 0.571% B) 4 week 0.2739% 52 week 0.4064% C) 4 week 0.4064% 52 week 0.2739% D) 4 week 0.571% 52 week 0.2535%

Answer rating: 100% (QA)

Calculate the bank discount rate as follows Bank Discount Rate Face Va... View the full answer