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Please finish all questions please. If not please 4.3 and 4.4. Q4 T-Bill Calculations 12 Points Suppose an investor purchases a treasury bill that matures
Please finish all questions please.
If not please 4.3 and 4.4.
Q4 T-Bill Calculations 12 Points Suppose an investor purchases a treasury bill that matures in 130 days and has a face value of $1 million. The price at purchase is $994,685.93. Thirty days later, she sells the security. The annualized (bond equivalent) realized return on the investment is 1.00%. Answer the following questions (for each calculation, you must enter your final answer in the space provided AND upload a file to show your work]: Q4.1 Yield at Purchase 2 Points Calculate the bond equivalent yield at the time of purchase [Express your answer in percentage terms, rounded to two decimal places (e.g. 5.67%)]: Enter your answer here Q4.2 Yield at Sale 4 Points Calculate the bond equivalent yield at the time of sale [Express your answer in percentage terms, rounded to two decimal places (e.g. 5.67%)]: Enter your answer here Upload a file (picture or PDF) to show your complete work to solve this problem: Please select file(s) Select file(s) Save Answer Q4.3 EAR 2 Points Calculate the effective annual rate of return (EAR) at the time of sale. [Express your answer in percentage terms, rounded to four decimal places (e.g. 5.6789%)]: Enter your answer here Upload a file (picture or PDF) to show your complete work to solve this problem: Please select file(s) Select file(s) Save Answer Q4.4 Expected vs Realized Return 4 Points Carefully explain why the expected return at the time of purchase differs from the actual realized return of 1.00%. Enter your answer here You may upload any additional calculations, diagrams, or models, if necessary to support your answer: Please select file(s) Select file(s) Q4 T-Bill Calculations 12 Points Suppose an investor purchases a treasury bill that matures in 130 days and has a face value of $1 million. The price at purchase is $994,685.93. Thirty days later, she sells the security. The annualized (bond equivalent) realized return on the investment is 1.00%. Answer the following questions (for each calculation, you must enter your final answer in the space provided AND upload a file to show your work]: Q4.1 Yield at Purchase 2 Points Calculate the bond equivalent yield at the time of purchase [Express your answer in percentage terms, rounded to two decimal places (e.g. 5.67%)]: Enter your answer here Q4.2 Yield at Sale 4 Points Calculate the bond equivalent yield at the time of sale [Express your answer in percentage terms, rounded to two decimal places (e.g. 5.67%)]: Enter your answer here Upload a file (picture or PDF) to show your complete work to solve this problem: Please select file(s) Select file(s) Save Answer Q4.3 EAR 2 Points Calculate the effective annual rate of return (EAR) at the time of sale. [Express your answer in percentage terms, rounded to four decimal places (e.g. 5.6789%)]: Enter your answer here Upload a file (picture or PDF) to show your complete work to solve this problem: Please select file(s) Select file(s) Save Answer Q4.4 Expected vs Realized Return 4 Points Carefully explain why the expected return at the time of purchase differs from the actual realized return of 1.00%. Enter your answer here You may upload any additional calculations, diagrams, or models, if necessary to support your answer: Please select file(s) Select file(s)Step by Step Solution
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