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8. Suppose a 6-month Treasury bill is priced with a yield on a bank discount basis of 3.31%. The bill will mature in 181 days.
8. Suppose a 6-month Treasury bill is priced with a yield on a bank discount
basis of 3.31%. The bill will mature in 181 days.
a. Assume the face value is $1,000, what is the bills dollar price?
b. What is the CD-equivalent yield?
c. What is the Treasury bills bond equivalent yield?
9. How does the Z-spread differ from the nominal spread?
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