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Question 3 : Maturity Price Yield Mid Yld 1M 24 Nov '20 0.0750 / 0.0650 0.0760 / 0.0659 0.0750% 2M 22 Dec '20 0.0900 /

Question 3:

Maturity

Price

Yield

Mid Yld

1M

24 Nov '20

0.0750 / 0.0650

0.0760 / 0.0659

0.0750%

2M

22 Dec '20

0.0900 / 0.0800

0.0913 / 0.0811

0.0862%

3M

28 Jan '21

0.0975 / 0.0875

0.0991 / 0.0890

0.0975%

6M

29 Apr '21

0.1100 / 0.1000

0.1116 / 0.1014

0.1100%

1Y

07 Oct '21

0.1225 / 0.1125

0.1243 / 0.1142

0.1225%

Please compute the value of the T-bill in Question 3 a as of today's date, i.e. 10/29/20.

    1. Compute the price at which you could sell the 6-month Treasury bill shown in the above table. (8 pts)
    1. Compute the bond equivalent yield on the 6-month Treasury Bill shown in the above table. (8 pts)

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