1a.A bank has issued a six-month, $2.6 million negotiable CD with a 0.46 percent quoted annual interest rate (i_{CD, sp}). a. Calculate the bond equivalent yield and the EAR on the CD. b. How much will the negotiable CD holder receive at maturity? c. Immediately after the CD is issued, the secondary market price on the $3 million CD falls to $2,598,600. Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $2.6 million face value CD.

1b. Refer to Table 55

a. Calculate the ask price of the T-bill maturing on June 23, 2016 as of May 16, 2016. b. Calculate the bid price of the T-bill maturing on August 04, 2016, as of May 16, 2016. (For all requirements, use 360 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

TABLE 5-5 Treasury Bill Rates Monday, May 16, 2016 Treasury bill bid and ask data are representative over-the-counter quotations as of 3 p.m. Eastern time quoted as a discount to face value. Treasury bill yields are to maturity and based on the asked quote. Bid Asked Chg Asked Yield Maturity 5/19/2016 0.168 0.158 -0.030 0.160 5/26/2016 0.173 0.163 -0.055 0.165 6/2/2016 0.203 0.193 -0.038 0.196 6/9/2016 0.195 0.185 -0.038 0.188 6/16/2016 0.193 0.153 0.028 0.186 6/23/2016 0.203 0.193 -0.010 0.196 6/30/2016 0.210 0.200 -0.010 0.203 7/7/2016 0.208 0.198 -0.015 0.201 7/14/2016 0.215 0.205 -0.020 0.209 7/21/2016 0.233 0.223 -0.023 0.226 7/28/2016 0.245 0.235 -0.008 0.239 S/4/2016 0.255 0.245 -0.005 0.249 8/11/2016 0.255 0.245 0.249 -0.020 -0.018 8/18/2016 0.255 0.245 0.249 8/25/2016 0.265 0.255 0.005 0.259 9/1/2016 0.258 0.248 -0.015 0.252 9/8/2016 0.255 0.245 -0.015 0.249 9/15/2016 0.263 0.253 0.003 0.257 9/22/2016 0.278 0.268 -0.018 0.272 9/29/2016 0.280 0.270 -0.013 0.274 10/6/2016 0.303 0.293 -0.013 0.297 10/13/2016 0.308 0.298 -0.005 0.303 10/20/2016 0.323 0.313 -0.025 0.317 10/27/2016 0.320 0.310 -0.025 0.315 11/3/2016 0.338 0.328 -0.025 0.333 11/10/2016 0.345 0.335 -0.025 0.341 12/8/2016 0.350 0.340 0.346 -0.005 -0.005 1/5/2017 0.338 0.328 0.334 2/2/2017 0.428 0.418 0.003 0.426 3/2/2017 0.460 0.450 -0.010 0.458 3/30/2017 0.485 0.475 -0.013 0.484 4/27/2017 0.523 0.513 -0.010 0.522