Question: 1. A recent listing for a Treasury bill gave an Asked Bank Discount Yield (d) of 1.30%. Its maturity was 80 days. a. What is

1. A recent listing for a Treasury bill gave an Asked Bank Discount Yield (d) of 1.30%. Its maturity was 80 days.

a. What is the T-bill's coupon (bond) equivalent yield (y)?

b. What price would a bank pay for this T-bill?

c. What is the effective annual yield (y*) for the T-bill?

d. If the Bid Bank Discount Yield (d) was 1.40%, what was the dealer's "spread" in dollars on the bill (assuming a $100,000 par value)?

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