Examine the following t-bill quote. Your pointy haired boss has instructed you to purchase $1 million in these treasury bills

c. FIVE days after you purchased the bill your boss tells you to sell the bills to raise money for a birthday party for his sister. You tell him that interest rates are higher by 100 basis points and warn him that the return on this investment will be less than he expected. How much you will receive for the bills? What is your holding period return?

Days to Maturity Ask Yield Bid Ask Maturity Date Dec 31 '99 85 4.65 4.63 Days to Maturity Ask Yield Bid Ask Maturity Date Dec 31 '99 85 4.65 4.63