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Q5. Suppose that on January 10, XYZ commercial bank wished to purchase a Treasury bill maturing on February 28. If dealers quote buyers a discount

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Q5. Suppose that on January 10, XYZ commercial bank wished to purchase a Treasury bill maturing on February 28. If dealers quote buyers a discount yield of 10 percent ( d=10% ), what must the XYZ commercial bank pay in TL ( P0) ? Calculate a) the "bond (coupon) equivalent yield (y) to the Commercial Bank". (13 pts) b) the price (P0) of the T-bill. ( 12pts) Q5. Suppose that on January 10, XYZ commercial bank wished to purchase a Treasury bill maturing on February 28. If dealers quote buyers a discount yield of 10 percent ( d=10% ), what must the XYZ commercial bank pay in TL ( P0) ? Calculate a) the "bond (coupon) equivalent yield (y) to the Commercial Bank". (13 pts) b) the price (P0) of the T-bill. ( 12pts)

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