1. A T-bill has an annual percentage rate (APR) of 1.92% based on the ask price. The maturity of the bill is 30 days. (a) Find the ask price (for $100 face value) of the T-bill. (b) If you wish to invest a par value (or face value) of $75,000, how much do you have to pay? 2. Consider the following two T-bills (both prices are for $10,000 face value)? (1) A 3-month bill selling at $9,901 (2) A 6-month bill selling at $9,804 (a) Calculate the annual percentage rate (APR) for each T-bill above. (b) Which security ogers a higher efective annual rate (EAR) and why? 3. Banks oer CDs (certicates of deposit) for their customers. Conventional CDs are time deposits that promise a xed interest rate. However if a customer cashes out her CD before the CD matures, then the bank imposes a penalty on the customer. Suppose you have $20,000. You are considering buying a 3-month CD with this $20,000. Bank A is ogering a 3% APR on its 3-month CD and Bank B is oering a 3% EAR on its 3-month CD. Suppose all other aspects of these two banks are the same with regard to their 3-month CDs, which bank would you buy your CD from? Why? By the time your CD matures, how much money would you get back when you cash out your CD when it matures. 1. A T-bill has an annual percentage rate (APR) of 1.92% based on the ask price. The maturity of the bill is 30 days. (a) Find the ask price (for $100 face value) of the T-bill. (b) If you wish to invest a par value (or face value) of $75,000, how much do you have to pay? 2. Consider the following two T-bills (both prices are for $10,000 face value)? (1) A 3-month bill selling at $9,901 (2) A 6-month bill selling at $9,804 (a) Calculate the annual percentage rate (APR) for each T-bill above. (b) Which security ogers a higher efective annual rate (EAR) and why? 3. Banks oer CDs (certicates of deposit) for their customers. Conventional CDs are time deposits that promise a xed interest rate. However if a customer cashes out her CD before the CD matures, then the bank imposes a penalty on the customer. Suppose you have $20,000. You are considering buying a 3-month CD with this $20,000. Bank A is ogering a 3% APR on its 3-month CD and Bank B is oering a 3% EAR on its 3-month CD. Suppose all other aspects of these two banks are the same with regard to their 3-month CDs, which bank would you buy your CD from? Why? By the time your CD matures, how much money would you get back when you cash out your CD when it matures