Question
please do this in excel question 7 a. A $17,000 T-bill is currently selling at 98 percent of its face value. The T-bill is 180
please do this in excel
question 7
a. A $17,000 T-bill is currently selling at 98 percent of its face value. The T-bill is 180 days from its maturity. Please calculate its (i) bond equivalent yield, (ii) discount yield, and (iii) EAR.
b. Suppose a bank enters a repurchase agreement in which it agrees to buy fed funds from one of its correspondent banks at a price of $10,000,000 with the promise to sell these funds back at a price of $10,000,291.67 ($10,000,000 plus interest of $291.67) after five days. How do you calculate the yield on this repurchase agreement to the bank?
c. A dealer is quoting a $13,000 face value, 180-day T-bill quoted at 2.75 bid, 2.65 ask. What is your buying and selling prices?
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