Question: Based on the Treasury Bill Listings table presented below, answer the following questions: Maturity Days to Maturity Bid Asked Change Feb 14 16 78 5.7

Based on the Treasury Bill Listings table presented below, answer the following questions: Maturity Days to Maturity Bid Asked Change Feb 14 16 78 5.7 4.9 0.003

Question: 1) What would be the amount paid by an investor who wishes to purchase the above quoted bill with a face value of $1,000?

2) Why is the bond-discount method for computing yields considered flawed as compared to the bond-equivalent yield?

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