Question: Problem # 5 : Find d P d i , the derivative of the previous result from Problem # 4 above, with respect Problem #

Problem #5: Find dPdi, the derivative of the previous result from Problem #4 above, with respect Problem #6: For the T-Bill in question 4 above, what value does dPdi approach as one gets
closer and closer to the maturity date?
to the quoted yield i. Use this derivative to approximate the change in the price of
the T-Bill if the yield were to have decreased by 0.002(i.e.0.2%) immediately
after the T-Bill was purchased.
NOTE PROBLEM #4: What is the price P today of a $140,000182-day Canadian T-Bill if its quoted yield is 9.82%? THE ANSWER IS $133464.83
 Problem #5: Find dPdi, the derivative of the previous result from

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!