Problem 5-8 (LG 5-2)

Refer to Table 55

Assume face value of $10,000 a. Calculate the ask price of the T-bill maturing on June 09, 2016, as of settlement on May 17, 2016. b. Calculate the bid price of the T-bill maturing on July 21, 2016, as of settlement on May 17, 2016. (For all requirements, use 360 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

TABLE 5-5 Treasury Bill Rates Monday, May 16, 2016 Treasury bill bid and ask data are representative over-the-counter quotations as of 3 p.m. Eastern time quoted as a discount to face value. Treasury bill yields are to maturity and based on the asked quote. Maturity Bid Asked Chg Asked Yield 5/19/2016 0.168 0.158 -0.030 0.160 5/26/2016 0.173 0.163 -0.055 0.165 6/2/2016 0.203 0.193 -0.038 0.196 6/9/2016 0.195 0.185 -0.038 0.188 6/16/2016 0.193 0.183 0.028 0.186 6/23/2016 0.203 0.193 -0.010 0.196 6/30/2016 0.210 0.200 -0.010 0.203 7/7/2016 0.208 0.198 -0.015 0.201 7/14/2016 0.215 0.205 -0.020 0.209 7/21/2016 0.233 0.223 -0.023 0.226 7/28/2016 0.245 0.235 -0.008 0.239 8/4/2016 0.255 0.245 -0.005 0.249 8/11/2016 0.255 0.245 -0.020 0.249 8/18/2016 0.255 0.245 -0.018 0.249 S/25/2016 0.265 0.255 0.005 0.259 9/1/2016 0.258 0.248 -0.015 0.252 9/8/2016 0.255 0.245 -0.015 0.249 9/15/2016 0.263 0.253 0.003 0.257 9/22/2016 0.278 0.268 -0.018 0.272 9/29/2016 0.280 0.270 -0.013 0.274 10/6/2016 0.303 0.293 -0.013 0.297 10/13/2016 0.308 0.298 -0.005 0.303 10/20/2016 0.323 0.313 -0.025 0.317 10/27/2016 0.320 0.310 -0.025 0.315 11/3/2016 0.338 0.328 -0.025 0.333 11/10/2016 0.345 0.335 -0.025 0.341 12/8/2016 0.350 0.340 -0.005 0.346 1/5/2017 0.338 0.328 -0.005 0.334 2/2/2017 0.428 0.418 0.003 0.426 3/2/2017 0.460 0.450 -0.010 0.458 3/30/2017 0.475 -0.013 0.484 0.485 0.523 4/27/2017 0.513 -0.010 0.522 TABLE 5-5 Treasury Bill Rates Monday, May 16, 2016 Treasury bill bid and ask data are representative over-the-counter quotations as of 3 p.m. Eastern time quoted as a discount to face value. Treasury bill yields are to maturity and based on the asked quote. Maturity Bid Asked Chg Asked Yield 5/19/2016 0.168 0.158 -0.030 0.160 5/26/2016 0.173 0.163 -0.055 0.165 6/2/2016 0.203 0.193 -0.038 0.196 6/9/2016 0.195 0.185 -0.038 0.188 6/16/2016 0.193 0.183 0.028 0.186 6/23/2016 0.203 0.193 -0.010 0.196 6/30/2016 0.210 0.200 -0.010 0.203 7/7/2016 0.208 0.198 -0.015 0.201 7/14/2016 0.215 0.205 -0.020 0.209 7/21/2016 0.233 0.223 -0.023 0.226 7/28/2016 0.245 0.235 -0.008 0.239 8/4/2016 0.255 0.245 -0.005 0.249 8/11/2016 0.255 0.245 -0.020 0.249 8/18/2016 0.255 0.245 -0.018 0.249 S/25/2016 0.265 0.255 0.005 0.259 9/1/2016 0.258 0.248 -0.015 0.252 9/8/2016 0.255 0.245 -0.015 0.249 9/15/2016 0.263 0.253 0.003 0.257 9/22/2016 0.278 0.268 -0.018 0.272 9/29/2016 0.280 0.270 -0.013 0.274 10/6/2016 0.303 0.293 -0.013 0.297 10/13/2016 0.308 0.298 -0.005 0.303 10/20/2016 0.323 0.313 -0.025 0.317 10/27/2016 0.320 0.310 -0.025 0.315 11/3/2016 0.338 0.328 -0.025 0.333 11/10/2016 0.345 0.335 -0.025 0.341 12/8/2016 0.350 0.340 -0.005 0.346 1/5/2017 0.338 0.328 -0.005 0.334 2/2/2017 0.428 0.418 0.003 0.426 3/2/2017 0.460 0.450 -0.010 0.458 3/30/2017 0.475 -0.013 0.484 0.485 0.523 4/27/2017 0.513 -0.010 0.522