Question
Construct a spreadsheet to solve equations for T-bills. See the ssTbillsTemplate spreadsheet on eClass; modify it to turn it into a working spreadsheet, complete with
Construct a spreadsheet to solve equations for T-bills. See the ssTbillsTemplate spreadsheet on eClass; modify it to turn it into a working spreadsheet, complete with correct formulas, and then answer the following 4 questions.
a) Konstantin buys a $35,000.00 T-bill on 2022-07-15 that matures on 2023-01-13. The interest rate is 5.280% and the daycount convention is ACT / 360. How much does he pay?
b) Konstantin buys a $7,000.00 T-bill on 2022-05-27 that matures on 2022-07-04. He pays $6,983.86 and the daycount convention is ACT / 365. What (annual) simple interest rate is he receiving?
c) Konstantin wants to buy a $31,000.00 T-bill that matures on 2015-07-05. His target price is $30,194.66, the (annual) simple interest rate is 5.350% and the daycount convention is ACT / 360. What is the last date on which he can still buy the T-bill? How much does he pay?
d) Konstantin owns a $18,000.00 T-bill that matures on 2012-03-21. His target price is $17,933.52, the (annual) simple interest rate is 3.140% and the daycount convention is ACT / 360. What is the first date on which he can sell the T-bill for more than the target price? How much does he receive?
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