Question: What is the discount yield, bond equivalent yield, and effective annual return on a $1 million Treasury bill that currently sells at 94.375 percent of

 What is the discount yield, bond equivalent yield, and effective annual

What is the discount yield, bond equivalent yield, and effective annual return on a $1 million Treasury bill that currently sells at 94.375 percent of its face value and is 70 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your percentage answers to 3 decimal places. (e.g., 32.161)) Problem 5-14 (LG 5-2) Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $26,950,000, with the promise to buy them back at a price of $27,000,000. a. Calculate the yield on the repo if it has a 6-day maturity. b. Calculate the yield on the repo if it has a 18 -day maturity. (For all requirements, use 360 days in a year. Do not round intermediate calculations. Round your percentage answers to 5 decimal places. (e.g., 32.16161))

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