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1 . a. (1 point) Suppose that you knew the price on the auction of a 182-day Treasury bill was 99.3825.What was the discount rate
1. a. (1 point) Suppose that you knew the price on the auction of a 182-day Treasury bill was 99.3825.What was the discount rate used to compute this price?
b. (1 point) Suppose you needed $50 million of overnight financing and would collateralize with $51,000,000 in Treasury securities (market value).If the quoted rate is 1.77%, what amount do you need to repay (i.e. the price at which you resell to the lender) the next day?
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