*PLEASE SHOW YOUR WORK*

Question 9:

Find the maturity value of a six-month, $702 note dated November 1, 2013, earning interest at 3.5%. (5 marks)

Question 10:

What is the face value of a three-month promissory note dated July 30, 2013, with interest at 5.3 percent if its maturity value is $1814.14? (5 marks)

Question 11:

An investment dealer bought a 182-day Government of Canada treasury bill at the price required to yield an annual rate of return of 3.38%

a) What was the price paid by the investment dealer if the T-bill has a face value of $1 000 000? (3 marks)

b) Later the same day, the investment dealer sold this T-bill to a large corporation to yield 3.25%. What was the investment dealer's profit on this transaction? (3 marks)

Question 12:

Government of Manitoba 364-day T-bills with a face value of $1 950 000 were purchased on April 17 for $1 875 960. The T-bills were sold on May 25 for $1895 900.

a) What was the market yield rate on April 17? (3 marks)

b) What was the yield rate on May 25? (3 marks)

c) What was the rate of return realized? (3 marks)