1. The following shows a partial listing of T-bills from the Wall Street Journal on Dec...

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1. The following shows a partial listing of T-bills from the Wall Street Journal on Dec 13, 2022. The face value of T-bill is $10,000. Maturity 1/24/2023 1/31/2023 Bid 3.750 3.835 Asked 3.740 3.825 Consider the T-bill maturing on Jan 31. a. What is the price at which the dealer is willing to sell assuming days to maturity are 49 days? b. What is the bond equivalent yield if you purchase the T-bill from the dealer? 1. The following shows a partial listing of T-bills from the Wall Street Journal on Dec 13, 2022. The face value of T-bill is $10,000. Maturity 1/24/2023 1/31/2023 Bid 3.750 3.835 Asked 3.740 3.825 Consider the T-bill maturing on Jan 31. a. What is the price at which the dealer is willing to sell assuming days to maturity are 49 days? b. What is the bond equivalent yield if you purchase the T-bill from the dealer?

Answer rating: 100% (QA)

a To calculate the price at which the dealer is willing to sell the Tbill we use th... View the full answer