Ama purchased a 1-year Treasury Bill on 1st July 2016 . The Bill has a face value of GHC 200,000 and a discount yield of 20%. She held the Bill for 75 days and gave it to James, her son, as a birthday gift. James was due to travel so he held the Bill for 55 days and sold it to Kofi. Upon buying the Bill, Kofi held it for 45 days and gave it to Rebecca as a present and she held the Bill till maturity. You are required to draw a table and indicate for each holder of the Bill the following information (i) Price at which the Bill was acquired or received (ii) The total discount if the Bill had been held till maturity (iii)The actual discount earned for the period in which the Bill was held (iv) Explanation of the relationship between the Price and the Discount to maturity (ii) A 182-Day Treasury Bill with a face value of GHC180,000 was sold at a price of GHC160,000. (i) Calculate the percentage and the cedi discounts on the Bill (ii) Calculate the interest and coupon equivalent yields on this Bill (iii) After holding the Bill for one-half of its maturity period or days it was used as a collateral in a repurchase agreement with a bank for an amount equivalent to 92.5% of the face value of the Bill and repurchased in 5 days later. How much did the bank earn on this repo agreement and what is the repo rate on the transaction? Ama purchased a 1-year Treasury Bill on 1st July 2016 . The Bill has a face value of GHC 200,000 and a discount yield of 20%. She held the Bill for 75 days and gave it to James, her son, as a birthday gift. James was due to travel so he held the Bill for 55 days and sold it to Kofi. Upon buying the Bill, Kofi held it for 45 days and gave it to Rebecca as a present and she held the Bill till maturity. You are required to draw a table and indicate for each holder of the Bill the following information (i) Price at which the Bill was acquired or received (ii) The total discount if the Bill had been held till maturity (iii)The actual discount earned for the period in which the Bill was held (iv) Explanation of the relationship between the Price and the Discount to maturity (ii) A 182-Day Treasury Bill with a face value of GHC180,000 was sold at a price of GHC160,000. (i) Calculate the percentage and the cedi discounts on the Bill (ii) Calculate the interest and coupon equivalent yields on this Bill (iii) After holding the Bill for one-half of its maturity period or days it was used as a collateral in a repurchase agreement with a bank for an amount equivalent to 92.5% of the face value of the Bill and repurchased in 5 days later. How much did the bank earn on this repo agreement and what is the repo rate on the transaction
