1.You would like to purchase a Treasury bill that is currently trading at 98.85% of face value and is 60 days from maturity. (a) Calculate the discount yield on this Treasury bill. (b) Calculate the T-bill's bond equivalent yield. 2. Suppose a bank enters a repurchase agreement in which it agrees to sell Treasury securities to a correspondent bank at a price of $24,950, with the promise to buy them back at a price of $25,000 (a) Calculate the repo yield (iRA) if it has a 7-day maturity. (b) Calculate the repo yield (IRA) if it has a 21-day maturity. 3. You have just purchased a four-month, $500,000 negotiable CD, which will pay a 5.5% annual interest rate. (a) How much do you expect to receive at maturity? (b) If the market rate on the CD rises to 6% right after your purchase, what is the CD's current market value? (c) If the price of your CD drops to $495,000 right after your purchase, what is the new market rate on the CD? 4. You have just purchased a 6-month $10,000 negotiable CD, which will pay a 4% annual interest rate. (a) If the market rate on the CD declines to 3.6% right after your purchase, what is the current market value of your CD? (b) If the market price of increases to $10,100 right after your purchase, what is the new market rate on your CD