Question: Need full Explanation and Calculation. Thank you. Below excel is for reference. 1. The following shows a partial listing of T-bills from the Wall Street

Need full Explanation and Calculation.
Thank you. Below excel is for reference.  Need full Explanation and Calculation. Thank you. Below excel is for
reference. 1. The following shows a partial listing of T-bills from the

1. The following shows a partial listing of T-bills from the Wall Street Journal on Dec 13, 2022. The face value of T-bill is $10,000. Maturity Bid Asked 1/24/20233.7503.740 1/31/20233.8353.825 Consider the T-bill maturing on Jan 31 . a. What is the price at which the dealer is willing to sell assuming days to maturity are 49 days? b. What is the bond equivalent yield if you purchase the T-bill from the dealer? ( 5 marks) 2. You are bullish on VAZ stock. The current market price is $60 per share, and you have $360,000 of your own to invest. You borrow an additional $240,000 from your broker at an interest rate of 5% per week and invest $600,000 in the stock. VAZ pays no dividends. The maintenance margin is 40%. a. Suppose the price of VAZ stock falls immediately after your purchase. How low can the price of VAZ stock fall before you receive a margin call? b. What is your rate of return if the price of VAZ stock has gone up by 15% after a week? ( 8 marks) 3. William is bearish on TAS and decide to sell short 30,000 shares at the current market price of $52 per share. The initial margin is 60%. The margin account pays no interest. A week later, the price of TAS has risen to $58. a. What is the remaining margin in the account? b. If the maintenance margin is 35%, will William receive a margin call? c. What is the rate of return on the short position? ( 8 marks)

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