Question: Table 3 . 6 & Table 3 . 7 Today : 6 - Jan - 2018 View the 6 month Marketable CD quotes in Table

Table 3.6 & Table 3.7

Today: 6-Jan-2018

View the 6 month Marketable CD quotes in Table 3.7. Use the quotes to answer the following questions: (1.5pt)

a) the bankers asked discount yield, rd,t %

b) the coupon equivalent yield, rc,t %

c) the effective yield, r*

Table 3.6 & Table 3.7 Today: 6-Jan-2018 View the 6 month Marketable

Help 82% O Fri 8:38 PM Tony Laaksonen Q E PS#3Data(FIN3520) Po Share E-49- O als insert v Comments 4 General $ % 28-28 X Delete Format Ideas Formatting as Table Styles X Sort Filter Find & Select Excel File Edit View Insert Format Tools Data Window 0.0 AutoSave OFF HES U Home Insert Draw Page Layout Formulas Data Review View Verdana 14 A A = = = Paste BI U D A E11 x fx C D E Today is 6-Jan-2018 2 Table 3. 6 T -Bill Quotations Maturity Bid Asked Chg Ask Yld 6/21/18 1.305 1.295 -0.018 1.32 5 7/19/18 1.425 1.415 L n.a. | 1.445 8/16/18 1.458 1.448 0.002 1.481 9/13/18 1.538 1.528 -0.007 1.57 F G H J K L M N Table 3.7 Maturity 1-Mo 2-Mo 3-Mo 6-Mo Marketable CD Rates Ann 1.34978 1.42275 1.47882 1.65738 13 14 Performance Duration Money Market + 6 - - + 100%

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