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Please show equations written out Assume that todays Wall Street Journal is showing the following information for a given Treasury Bill with a $20,000 face
Please show equations written out
Assume that todays Wall Street Journal is showing the following information for a given Treasury Bill with a $20,000 face value:
Days to maturity: 253
Bid yield: 0.048
Ask yield: 0.044
(a). What is the price that you will have to pay if you were to buy one T-bill from a dealer?
(b). What is the price you will get if you were to sell one T-bill to the dealer?
(c). What is the bid-ask-spread for the T-bill above?
(d). What does a narrow bid-ask-spread indicate?
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