Question: a ) What is the discount yield, bond equivalent yield, and effective annual return on a $ 1 million Treasury bill that currently sells at
a What is the discount yield, bond equivalent yield, and effective annual return on a $ million Treasury bill that currently sells at percent of its face value and is days from maturity? marks
b Calculate the bond equivalent yield and effective annual return on a jumbo CD that is days from maturity and has a quoted nominal yield of percent? marks
c You would like to purchase a Treasury bill that has a $ face value and is days from maturity. The current price of the Treasury bill is $ Calculate the discount yield on this Treasury bill. marks
d Suppose you purchase a Tbill that is days from maturity for $ The Tbill has a face value of $ Calculate the Tbill's quoted discount yield. marks
e What is the bid price of a $ face value Tbill with a bid rate of percent if there are days to maturity? marks
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