Question: QUESTION 10 23 points Save Answer Today's date is 15 June 2023. Using this information, consider the following debt securities. Official Cash Rate: is 3.60%

QUESTION 10 23 points Save Answer Today's date is 15 June 2023. Using this information, consider the following debt securities. Official Cash Rate: is 3.60% Bank Bill: A bank bill with a face value of $5.821 million which has 122 days to maturity and is trading at a yield of 3.57% Bond A $14.7513 million face value bond that was issued today and which has a 2.75% coupon, a 2 July 2045 maturity, that is trading at a yield to maturity of 3.39% p.a. Required a. In one word, what is the shape of the yield curve? (1 mark) b. What is the fair market price for: i. Bank bill (2 marks) ii. Bond (8 marks) c. 41 days later, on 26 July 2023, following the tightening of monetary policy by the Reserve Bank of Australia, the yield curve has shifted such that all yields across the yield curve are now higher by 0.25%. What is the fair market price for your debt securitites now? i. Bank bill (2 marks) ii. Bond (8 marks)

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