Question: Please show the full solution by hand showing every equation that you have used. Also, don't do things in excel, everything should be seen. Show

Please show the full solution by hand showing every equation that you have used. Also, don't do things in excel, everything should be seen. Show all steps taken to reach the answer. Thank you very much.

Question 3 Bonds, for a federal treasury bill, were issued with a face value of $250,000 and a coupon rate of 0.20% per quarter, and payments are quarterly. This bond is bought in the bond market before maturation, and there are only 16 payments remaining. If the rst coupon payment of this bond is due today and the next payment is due after three months (one quarter), which you collect if you buy this bond now. How much are you ready to pay for this bond today? As an investor, you wish to earn 1.6% compounded daily. Hints: Vl- Find quarterly effective interest rate for this investor. VII Coupon rate can be used to calculate recurrent revenues from this bond which will be coupon rate x face value

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