i. Discuss several ways in which an understanding of the process and nature of investments can be of importance

ii. How can the money market and the instruments therein can assist in the management of the firm.

iii. How can the money market and the instruments therein can assist in achieving your overall investment goals.

i. What were the discount rate, bond equivalent yield, and price on the 13-week T-bill issued on 10/10/2019 (reported here https://www.treasurydirect.gov/instit/instit.htm)?

On Monday morning, 01/23/17, you had observed the following dealer quotes for on-the-run 13-week T-bill:

IssueBidAskChangeAsk Yield

04-20-20171.2581.2080.071.228

ii. What was the dollar price you got for selling $100,000 par value of the T-bill?

iii. What was the dollar price you paid for buying $100,000 par value of the T-bill?

iv. What was the return in dollars you made from buying $100,000 par value of the T-bill and holding it to maturity?

v. Show that the dealer correctly quoted the above yield.