Q 42.You submit a noncompetitive bid to purchase a 28-day $1,000 Treasury bill, and you find that you are buying the bond for $999.81333. What are the discount rate and the investment rate?

a. 0.00465

b. 0.00564

c. 0.00243

d. 0.00345

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Q13. Suppose you buy a call option on a $100,000 Treasury bond futures contract with an exercise price of 105. If the price of the Treasury bond is 115 at expiration, is the option at the money, in the money or out of the money? Determine the premium if the profit equals $8,000.

a. $3000

b. $888,993

c. $992,000

d. $2000