3 A bank issues a CD with a face value of USD 5 million, a term of 181 days and a coupon of 4.7%.

a) What are the total maturity proceeds of the CD?

(b) You buy this CD when it has only 129 days left until maturity, on a quote of 4.80%/4.85%. What amount do you pay for it?

(c) You then sell this same CD when it has only 122 days left until maturity, on a quote of 5.05/5.10%. What amount do you receive for it?

(d) Over the 7 days that you have held the CD, what yield have you earned on your investment?

(e) At what different yield would you need to have sold in

(c) in order to have achieved an overall yield on the investment to you of 4.80%?