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 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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