Answer the next 4 questions using the information in the following table.

You are considering the purchase of a $1,000 par value Treasury Bill and observe the following quotes for T-Bills in the market: Ignore transaction costs.

Time to Maturity (days)	Bid %	Asked %
60	1.64	1.55
88	1.63	1.54
116	1.62	1.53
144	1.61	1.52

4. The bid price of a T-bill in the secondary market is

1. the price at which the dealer in T-bills is willing to sell the bill.
2. the price at which the investor in T-bills is willing to sell the bill.
3. larger than the ask price of the T-bill.
4. The price at which the investor can buy the T-bill.

5. What is the purchase price of the 144-day bill that you face?

1. $993.29
2. $993.56
3. $993.92
4. $994.05

6. What would be the effective annual rate of return on your investment if you held the bill until maturity?

A. 1.53%

B. 1.56%

C. 1.65%

D. 1.72%

7. What would be the effective annual rate of return on your investment if you bought this bill today and were able to sell it back to a dealer after 28 days, assuming that yields do not change over time?

A. 1.31%

B. 1.61%

C. 1.53%

D. 1.13%