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(B) The bid and ask yields for a 100- day US Treasury Bill were quoted by a bond dealer as 5.91% and 5.89%, respectively. The
(B) The bid and ask yields for a 100- day US Treasury Bill were quoted by a bond dealer as 5.91% and 5.89%, respectively. The face value of this US Treasury Bill is $100,000. Shouldnt the bid yield be less than the ask yield, because the bid yield indicates how much the dealer is willing to pay and the ask yield is what the dealer is willing to sell the Treasury bill for? Please explain your view on this with an illustration of calculation.
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