1.

Your investments increased in value by 15.5 percent last year but your purchasing power increased by only 11.4 percent. What was the approximate inflation rate? (Enter your answer as a percent rounded to 1 decimal place. Omit the "%" sign in your response.)

Inflation rate = ?

2.

What is the price of a U.S. Treasury bill with 68 days to maturity quoted at a discount yield of 2.05 percent? Assume a $1 million face value. (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response. )

Price = ?

3.

A U.S. Treasury bill with 108 days to maturity is quoted at a discount yield of 2.00 percent. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Bond equivalent yield = ?

4.

A Treasury bill purchased in December 2015 has 58 days until maturity and a bank discount yield of 2.04 percent. Assume a $100 face value.

a.

What is the price of the bill as a percentage of face value? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. Omit the "%" sign in your response.)

Price = ?

b.	What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Bond equivalent yield = ?