Refer to the attached excerpts from the Wall Street Journal, to answer the following questions: (the excerpts show the closing prices as of Thursday January 23, 2020 and Wednesday April 1, 2020).

1. You purchased a T-bill on Thursday January 23, 2020 which matures on July 30, 2020.

Determine the purchase price of the T-bill (how much you paid for it). Use the excerpt of January 23 to get the price

2. On Wednesday April 1, 2020, you sold the same T-bill (which has the same maturity on July 30). Use the excerpt of April 1, 2020 to get the price

a. Determine the selling price of the T-bill (how much you received for it).

b. Determine the holding period rate of return (HPR) on this investment.

c. Determine the Annual Percentage rate of Return (APR) on this investment.

d. Determine the Effective Annual Rate of Return (EAR) on this investment.

 

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Thursday, January 23, 2020 Treasury Bills Treasury bill bid and ask data are representative over-the-counter quotations as of 3pm Eastem time quoted as U.S. Treasury Quotes Wednesday, April 01, 2020 a discount to face value. Treasury bill yields are to maturity and based on the asked quote. • Treasury Bills MATURITY BID YIELD ASKED YIELD CHANGE ASKED YIELD Treasury bill bid and ask data are representative over-the-counter quotations as of 3pm Eastem time quoted as +a discount to face value. Treasury bill yields are to maturity and based on the asked quote. 1/28/2020 1.460 1.450 unch. 1.475 MATURITY BID ASKED CHANGE ASKED YIELD 6/11/2020 1.480 1.470 -0.013 1.491 6/11/2020 0.073 0.063 +0.002 0.064 6/18/2020 1.478 1.468 -0.002 1.493 6/18/2020 0.085 0.075 +0.013 0.076 6/25/2020 1.480 1.470 -0.005 1.495 6/25/2020 0.075 0.065 +0.005 0.066 7/2/2020 1.483 1.473 -0.005 1.498 7/2/2020 0.093 0.083 -0.008 0.084 7/9/2020 1.480 1.470 -0.005 1.496 7/9/2020 0.080 0.070 +0.005 0.071 7/16/2020 1.488 1.478 -0.013 1.504 7/16/2020 0.110 0.100 +0.033 0.102 7/23/2020 1.493 1.483 ynch. 1.509 7/23/2020 0.128 0.118 +0.055 0.120 7/30/2020 1.505 1.495 -0.008 1.522 7/30/2020 0.140 0.130 +0.058 0.132 8/6/2020 1.508 1.498 -0.007 1.520 8/6/2020 0.105 0.095 +0.028 0.097 8/13/2020 1.513 1.503 -0.005 1.530 8/13/2020 0.115 0.105 +0.033 0.107 8/20/2020 1.518 1.508 -0.002 1.535 8/20/2020 0.123 0.113 +0.043 0.114 8/27/2020 1.518 1.508 +0.008 1.536 8/27/2020 0.115 0.105 +0.023 0.107 9/3/2020 1.513 1.503 -0.008 1.531 9/3/2020 0.125 0.115 +0.025 0.117 9/10/2020 1.520 1.510 +0.013 1.539 9/10/2020 0.140 0.130 +0.025 0.132 9/17/2020 1.508 1.498 +0.005 1.526 9/17/2020 0.083 0.073 +0.030 0.074 3/26/2020 1.503 1.493 +0.005 1.521 Thursday, January 23, 2020 Treasury Bills Treasury bill bid and ask data are representative over-the-counter quotations as of 3pm Eastem time quoted as U.S. Treasury Quotes Wednesday, April 01, 2020 a discount to face value. Treasury bill yields are to maturity and based on the asked quote. • Treasury Bills MATURITY BID YIELD ASKED YIELD CHANGE ASKED YIELD Treasury bill bid and ask data are representative over-the-counter quotations as of 3pm Eastem time quoted as +a discount to face value. Treasury bill yields are to maturity and based on the asked quote. 1/28/2020 1.460 1.450 unch. 1.475 MATURITY BID ASKED CHANGE ASKED YIELD 6/11/2020 1.480 1.470 -0.013 1.491 6/11/2020 0.073 0.063 +0.002 0.064 6/18/2020 1.478 1.468 -0.002 1.493 6/18/2020 0.085 0.075 +0.013 0.076 6/25/2020 1.480 1.470 -0.005 1.495 6/25/2020 0.075 0.065 +0.005 0.066 7/2/2020 1.483 1.473 -0.005 1.498 7/2/2020 0.093 0.083 -0.008 0.084 7/9/2020 1.480 1.470 -0.005 1.496 7/9/2020 0.080 0.070 +0.005 0.071 7/16/2020 1.488 1.478 -0.013 1.504 7/16/2020 0.110 0.100 +0.033 0.102 7/23/2020 1.493 1.483 ynch. 1.509 7/23/2020 0.128 0.118 +0.055 0.120 7/30/2020 1.505 1.495 -0.008 1.522 7/30/2020 0.140 0.130 +0.058 0.132 8/6/2020 1.508 1.498 -0.007 1.520 8/6/2020 0.105 0.095 +0.028 0.097 8/13/2020 1.513 1.503 -0.005 1.530 8/13/2020 0.115 0.105 +0.033 0.107 8/20/2020 1.518 1.508 -0.002 1.535 8/20/2020 0.123 0.113 +0.043 0.114 8/27/2020 1.518 1.508 +0.008 1.536 8/27/2020 0.115 0.105 +0.023 0.107 9/3/2020 1.513 1.503 -0.008 1.531 9/3/2020 0.125 0.115 +0.025 0.117 9/10/2020 1.520 1.510 +0.013 1.539 9/10/2020 0.140 0.130 +0.025 0.132 9/17/2020 1.508 1.498 +0.005 1.526 9/17/2020 0.083 0.073 +0.030 0.074 3/26/2020 1.503 1.493 +0.005 1.521

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