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(10 marks) Today is March 1, 2015. Kai has $19,426.10 and wants to buy a T-bill with a face value of $20,000 that matures on
(10 marks) Today is March 1, 2015. Kai has $19,426.10 and wants to buy a T-bill with a face value of $20,000 that matures on December 9, 2015. The annual simple discount rate is 4.500% and the daycount convention is ACT /365. a) How much would the T-bill cost if he were to purchase it today? b) How much interest would he earn every day (if the discount rate stayed constant)? c) If Kai doesn't buy the T-bill today, what is the last day on which he will still be able to buy it
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