Question: please do it in 10 minutes will upvote A2 Part (a) When the current rate of discount on treasury bills is 3.25%, perform the following

 please do it in 10 minutes will upvote A2 Part (a)

please do it in 10 minutes will upvote

A2 Part (a) When the current rate of discount on treasury bills is 3.25%, perform the following calculations: i. Calculate the price of a newly issued 7 month treasury bill for 135,000. [2 marks] ii. Assuming that all else remains constant, what will be its price 3 months after its issue? [1 mark] iii. If the rate of discount fell by 0.15%, what would be the price of a newly issued 5 month treasury bill for 650,000? [2 marks] When the current rate of discount on treasury bills is 2.50%, perform the following calculations: iv. Calculate the price of a newly issued 5 month treasury bill for 175,000. [2 marks] 20215 Page 2 of 9 V. If market interest rates fell by 0.75 percentage points, what would be the price of a newly issued 8 month treasury bill for 170,000? [2 marks] vi. Calculate the discount rate on a treasury bill with a redemption value of 160,000 in 5 months, purchased at 158,500. [2 marks] Part (b)

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