A three-month bill is issued at a discount of 7% and the price of a three-month bill is 100 (3/12) 7 = 98.25. Therefore, for every $98.25 that you invest today, you receive $100 at the end of three months. The return over three months is 1.75/98.25 = .0178, or 1.78%. This is equivalent to an annual yield of 7.32%. Suppose that one month has passed and the investment still offers the same annually compounded return.

a.Calculate the current price.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

b.Calculate the return over the month.(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c.Calculate the present annual yield.(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)