Question
Please answer both parts!!! Part 1 In the Global Financial Crisis box in Section 6.2, Bloomberg.com reported that the three-month Treasury bill sold for a
Please answer both parts!!!
Part 1
In the Global Financial Crisis box in Section 6.2, Bloomberg.com reported that the three-month Treasury bill sold for a price of $100.002556 per $100 face value. What is the yield to maturity of this bond, expressed as an EAR?
The three-month yield to maturity is
enter your response here%.
(Round to six decimal places.)
Part 2
The yield to maturity of a $1,000 bond with a 7.3% coupon rate, semiannual coupons, and two years to maturity is 7.9% APR, compounded semiannually. What is its price?
The price of the bond is
$enter your response here.
(Round to the nearest cent.)
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