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Part 1: You want to purchase a 182 day Treasury Bill with a $500,000 face value. If the Bond Equivalent Yield (BEY) is 4.5%,

 


 

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Part 1: You want to purchase a 182 day Treasury Bill with a $500,000 face value. If the Bond Equivalent Yield (BEY) is 4.5%, how much would you pay for the T Bill? 490196 2. How much interest will you earn if you hold the T Bill from Part 1 until the T Bill matures? 9804 3. Now assume that you need to sell the T Bill from Part 1 after holding it for 50 days. At the date of sale, the BEY has fallen to 4.25%. What is the sale price of the T Bill? 492431 4. How much interest did you earn, if you held the T Bill in Part 1 for 50 days and sold it when the BEY had fallen to 4.25%? 2235 5. BEYT Bill FaceValue-PV B PV n Based on this, what is the BEY for a 91 day T Bill with a $100,000 face value and a current market price of $98,526.16? Enter the number without any signs eg. if 3%, enter 3. 6 (nearest dollar without dollar sign ($) or comma, e.g. 15000)

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