Now assume that you have to sell the T Bill purchased in Question #21 above (a $2,000,000 Face Value, 157 days to maturity and a BEY of 3.8%), after you have held it for 40 days. If BEYs have risen to 4.7%, what price can you sell the T Bill for?

Multiple Choice

• $1,970,315.71

• $1,914,547.28

• $1,905,421.11

• $1,864,326.56

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QUESTION 21.

You just won a $2,000,000 lottery. Although tempted to spend your win, you have decided to invest the $2,000,000 in Government of Canada Treasury Bills until you gain a better understanding of finance. If 157-day T Bills currently have a Bond Equivalent Yield (BEY) of 3.8%, how much will a T Bill with a $2,000,000 face value cost to purchase?

Multiple Choice

• $1,396,373.12

• $1,219,452.89

• $1,967,835.33

• $1,532,457.21