3. The following table shows a partial listing of T-bills from the Wall Street Journal Outline. Rather than providing prices of each bill, the financial press reports yields using the bank-discount method. The face value of T-bill is $10,000. Treasury Bills August 26, 2020 Maturity Bid (%) Asked (%) 10/8/2020 0.093 0.083 10/13/2020 0.098 0.088 10/22/2020 0.090 0.080 10/29/2020 0.095 0.085 For the bill maturing on October 22, 2020, what is the price the dealer is selling at assuming days to maturity are 57 days? What is its bond equivalent yield? (10 marks) 4. You are bullish on ABB stock. The current market price is $300 per share, and you have $60,000 of your own to invest. You borrow an additional $60,000 from your broker at an interest rate of 5% per year and invest $120,000 in the stock a. Suppose the price of ABB stock falls immediately after your purchase. The maintenance margin is 40%. How low can the price of ABB stock fall before you receive a margin call? b. Suppose a year has passed. What is your rate of return if the price of ABB stock has gone up by 15%? Ignore any expected dividend. (10 marks)