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Consider a Treasury Bill Quote with a bid of 4.30% and an Ask of 4.00% that matures in 80 days. The par value is 10,000.
Consider a Treasury Bill Quote with a bid of 4.30% and an Ask of 4.00% that matures in 80 days. The par value is 10,000. Use the "Bank-Discount" method to answer the following. A) In dollars, how much would you pay to purchase this T-Bill based on these quotes? B) What is the annualized ASK Yield (to the hundreths percentage points) if you purchased the T-Bill today based on these quotes and held it for 80 days to maturity?
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