Question 1 (2 points) Net interest You manage an investment portfolio funded by one-year term deposits. The depositors leave their money with you for one year. You agree to pay them 100 basis points (1%) interest at the end of the year. You are currently investing funds in $1,000,000 one-year Treasury Bills. You are to achieve a net interest rate of at least xx basis points. What is your maximum bid in the T-Bill auction? Explain. Portfolio bps % fraction Q 25 0.25% 0.0025 GEA, GC, SL, ADP 30 0.30% 0.0030 JKB, AMG, RP, YW 35 0.35% 0.0035 MJA, LMB, JAB, LE, AG, JGM, CKN, PSS,ZZ 40 0.40% 0.0040 MLC, SH, CJM, SS, BS, MM OU Question 1 (2 points) Net interest You manage an investment portfolio funded by one-year term deposits. The depositors leave their money with you for one year. You agree to pay them 100 basis points (1%) interest at the end of the year. You are currently investing funds in $1,000,000 one-year Treasury Bills. You are to achieve a net interest rate of at least xx basis points. What is your maximum bid in the T-Bill auction? Explain. Portfolio bps % fraction Q 25 0.25% 0.0025 GEA, GC, SL, ADP 30 0.30% 0.0030 JKB, AMG, RP, YW 35 0.35% 0.0035 MJA, LMB, JAB, LE, AG, JGM, CKN, PSS,ZZ 40 0.40% 0.0040 MLC, SH, CJM, SS, BS, MM OU