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 180day ( T )-bill assuming other things being constant? Discuss. (2 marks)

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)