Question: You are given the following information about the current yield curve: the 3-month, 6-month, and 9-month T-bill (zero coupon) yields are 0.75%, 1.25%, and 1.5%

You are given the following information about the current yield curve: the 3-month, 6-month, and 9-month T-bill (zero coupon) yields are 0.75%, 1.25%, and 1.5% per quarter, respectively. Suppose you invest in the 9-month bill and hold for a 3-month period.

a) If the yield on the 9-month bill is unchanged at the end of the quarter, what is the holding period return?

b) If the yield curve at the end of the quarter is unchanged from today, what is the holding period return?

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