1." Asked " vs. "Asked Yield"

Go to https://www.wsj.com/market-data/bonds/treasuries?mod=md_bond_view_treasury_quotes, click "Treasury Bills" tab, and you will be observing the bid and ask quotations for the treasury bills with various maturities, with the earliest maturing treasury bill on the very top line. Please conduct following calculation based on the quote of the earliest maturing treasury bill:

a. "Asked" is the discount yield based on the current purchase price. Please use the "Asked" to calculate current price of the treasury bill.

b. " Asked Yield" is the asked discount yield converted to a bond equivalent yield.Please use the "Asked Yield" to calculate current price of the treasury bill.

Hint: The current price should be the same using either the "Asked" or "Asked Yield". Please read Example 5-5 on textbook page 146 for calculation details.

2. Auction Results

Go to the Bureau of Public Debt website at https://treasurydirect.gov/instit/annceresult/press/press.htm and find the information on the most recent 13-week Treasury bill auctions using the following steps. Click on "Bill." Click on "Term 13-Week." Under the column, "Competitive Results." click on "PDF." This will bring the file onto your computer that contains the relevant data.

a. What is the high, low, and median discount yield on the most recent issue?

b. What is the investment rate or the bond equivalent yield on the most recent issue?

c, What is the "Allotted at High" on the most recent issue? Use your own words to interpret the "Allotted at High".

d. What is the dollar value of tendered and accepted competitive bids for the most recent issue?

e. What is the dollar value of noncompetitive bids on the most recent issue?

f. Research online and explain "FIMA" and "SOMA",

3. Week 2 Reflection

What is an "ah-ha" learning moment from this chapter and how does it apply to your current or past experiences.

***PLEASE FOLLOW ALL STEPS AND ANSWER ALL QUESTIONS, THANK YOU!***