(a) A trader, Tom, buys a Treasury note with a face value of 1,000 which will mature in 180 days. Currently such T-notes are yielding 3.85% per annum. a) What amount will Tom pay for the T-note? [5 marks] 90 days later, Tom sells the Treasury note to another trader, James, for $987. b) What is the annual rate of return (HPY, Holding Period Yield) for Tom? [4 marks) c) What is the current Yield to Maturity (YTM) for this security? [4 marks] (b) Calculate the yield to maturity given a $1 million 60-day Treasury bill is purchased for $994,848.59. [3 marks] (a) A trader, Tom, buys a Treasury note with a face value of 1,000 which will mature in 180 days. Currently such T-notes are yielding 3.85% per annum. a) What amount will Tom pay for the T-note? [5 marks] 90 days later, Tom sells the Treasury note to another trader, James, for $987. b) What is the annual rate of return (HPY, Holding Period Yield) for Tom? [4 marks) c) What is the current Yield to Maturity (YTM) for this security? [4 marks] (b) Calculate the yield to maturity given a $1 million 60-day Treasury bill is purchased for $994,848.59. [3 marks]