Question
a.Suppose a Treasury bill with 72 days to maturity is quoted at an ask of 4.43% on a bank discount basis.Calculate the price, the bond
- a.Suppose a Treasury bill with 72 days to maturity is quoted at an ask of 4.43% on a bank discount basis.Calculate the price, the bond equivalent yield, and the effective annual yield.
b.A 90-day negotiable CD is quoted at 4.75%.Convert the yield to a bond-equivalent basis.
c.Verify the reported YTM on the quotes shown below (prices % of par).
May 15, 2018 Treasury Quote Maturity Coupon 5/15/2024 2.500 February 15, 2018 TIPS Quote Maturity Coupon 2040 Feb 15 2.125 Bid Ask 97.2266 97.2422 Bid Ask 123.9063 124.0625 chg -0.4766 cbg + 20 ytm 3.006 vtm 0.915 Adj Par 1140
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a For a 72day Tbill quoted at 443 Number of days to maturity 72 Quote basis bank ...
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
