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Bill Prices. Greta Investment Fund is buying a bank bill today that matures in 135 days' time. The bill has a face value of $350
Bill Prices. Greta Investment Fund is buying a bank bill today that matures in 135 days' time. The bill has a face value of $350 000 and the current market yield on this bill is 4.25% pa. What is the price that Greta Investment Fund will have to pay to buy the bill today? After 36 days of holding the bill, Greta Investment Fund wants to sell the bill. At that time, yields for 99-day bills are 4.80% and 36-day bill yields are 4.5%. What is the price that Greta Investment Fund will receive when it sells the bill?
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