$2$

Time to Maturity

$($days$)$

Bid

Asked

$3$

$4$

$5$

$6$

$7$

$\backslash$table$[[8,$Par $=$$$1,000,],[9,,],[10,,]]$

What is the purchase price of the $60,116,$ and $172-$day bill that you face?

$11$

$12$

Price $=,$$$1,000(1-r_{BD}\frac{n}{360})$

What would be the effective annual rate of return on your investment if you held the bill until maturity? $($for all three bills$)$

$r=(1+\frac{\text{D}\text{i}\text{s}\text{c}\text{o}\text{u}\text{n}\text{t}}{\text{P}\text{r}\text{i}\text{c}\text{e}}{)}^{\frac{365}{n}}-1$

Which T$-$bill will you invest in$?$ Assume you will hold it to maturity.

What would be EAR if you bought this bill today and sell it back to a dealer after $84$ days, assuming that yields do not change over time?

$($Bonus Question$)$

Results should be presented using $4-$decimal places for rates and $3-$decimal places for prices.