Question: Can someone pls help me with this question (see below). My teacher marked (14,944,854.67) as the RIGHT ANSWER. This is the second time I am

Can someone pls help me with this question (see below). My teacher marked (14,944,854.67) as the RIGHT ANSWER. This is the second time I am posting this question here as another person from Chegg gave me an incorrect answer of $14,972,301.24

Given that,

Face value = $15 million

Risk-free rate r = 1.11%

No. of years n = 2/12

Calculate the fair price

Fair Price = Face Value / (1 + r)^n

Fair Price = 15,000,000 / (1 + 1.11%)^(2/12)

Fair Price = 15,000,000 / 1.00185

Fair Price = $14,972,301.24 NOT CORRECT

QUESTION: Sarah, a portfolio manager plans to buy 1-month Treasury bills in 2 months. The total face amount of securities she plans to buy is $15 million. The current price for 3-month Treasury bills is $994,483 per $1 million face amount. The current, effective, annual risk-free rate over the 2 months is 1.11 percent. Calculate the fair total forward price.

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