Question 1 (10 marks) Monetary Authority of Singapore (MAS) issued a 180-day Treasury bill (T-bill) with face value of \( \$ 100 \) on 15 December 2022, which is currently traded at \( \$ 98.5 \) in the market on 15 March 2023. Assume the yield remains unchanged throughout the maturity (YTM is flat), and 365 days a year.

Required: (a) Compute the Yield-to-Maturity (YTM) and the price of T-bill on the issue date. Assume YTM is flat. (8 marks) (b) If the interest rate is expected to

decrease, does 60 -day T-bill perform better or worse than 180 . day T-bill assuming other things being constant? Discus5. (2 marks)

Hide Transcribed Text Question 1 ( 10 marks) Monetary Authorlty of Singapore (MAS) issued a 180-day Treasury bill (T-bill) with face value of

Question 1 (10 marks) Monetary Authority of Singapore (MAS) issued a 180-day Treasury bill (T-bill) with face value of $100 on 15 December 2022, which is currently traded at $98.5 in the market on 15 March 2023 . Assume the yield remains unchanged throughout the maturity (YTM is flat), and 365 days a year. Required: (a) Compute the Yield-to-Maturity (YTM) and the price of T-bill on the issue date. Assume YTM is flat. (8 marks) (b) If the interest rate is expected to decrease, does 60-day T-bill perform better or worse than 180 day T-bill assuming other things being constant? Discuss. (2 marks) Hide Transcribed Text Question 1 (10 marks) Monetary Authority of Singapore (MAS) issued a 180-day Treasury bill (T-bill) with face value of $100 Question 1 (10 marks) Monetary Authority of Singapore (MAS) issued a 180-day Treasury bill (T-bill) with face value of $100 on 15 December 2022, which is currently traded at $98.5 in the market on 15 March 2023 . Assume the yield remains unchanged throughout the maturity (YTM is flat), and 365 days a year. Required: (a) Compute the Yield-to-Maturity (YTM) and the price of T-bill on the issue date. Assume YTM is flat. (8 marks) (b) If the interest rate is expected to decrease, does 60-day T-bill perform better or worse than 180 day T-bill assuming other things being constant? Discuss. (2 marks) Hide Transcribed Text Question 1 (10 marks) Monetary Authority of Singapore (MAS) issued a 180-day Treasury bill (T-bill) with face value of