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