5. FED FUNDS VERSUS T-BILLS In this problem ing) (a) Suppose you deposit $1M at the Fed (or lend to the Federal Funds market) at a 2.00% rate (ACT/360 basis). How much would be returned to you the following day? (b) What if today is Friday? How much returned to you on (c) After compounding, how much will you have by lending and rolling (Friday to Friday)? (d) Does it matter to how much we receive after lending for one week starting from another day of the week (Mon, Tue, Wed or (e) How much do we have after 52 weeks? (f) In comparison, how much would we have if we invested $1M (market value not face value) in 52-week T-bills at a 2.00% yield? (g) Which gives explore the difference between investing overnight (so daily compound- qoted yield. we investing in a discount instrument, assuming both have the same versus Monday? over for 1 week Thu)? (e) (f)? Can you explain why? us more or 5. FED FUNDS VERSUS T-BILLS In this problem ing) (a) Suppose you deposit $1M at the Fed (or lend to the Federal Funds market) at a 2.00% rate (ACT/360 basis). How much would be returned to you the following day? (b) What if today is Friday? How much returned to you on (c) After compounding, how much will you have by lending and rolling (Friday to Friday)? (d) Does it matter to how much we receive after lending for one week starting from another day of the week (Mon, Tue, Wed or (e) How much do we have after 52 weeks? (f) In comparison, how much would we have if we invested $1M (market value not face value) in 52-week T-bills at a 2.00% yield? (g) Which gives explore the difference between investing overnight (so daily compound- qoted yield. we investing in a discount instrument, assuming both have the same versus Monday? over for 1 week Thu)? (e) (f)? Can you explain why? us more or