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Refer to the attached excerpts from the Wall Street Journal, to answer the following questions: (the excerpts show the closing prices as of Thursday January

Refer to the attached excerpts from the Wall Street Journal, to answer the following questions: (the excerpts show the closing prices as of Thursday January 23, 2020 and Wednesday April 1, 2020).

A. You purchased a T-Note on Thursday January 23, 2020 which matures on May 31, 2024. Determine the purchase price of the T-Note (how much you paid for it). Use the excerpt of January 23 to get the price B. You sold the same T-Note on Wednesday April 1, 2020 which matures on May 31, 2024.

a. Determine the selling price of the T-Note (how much you paid for it). Use the excerpt of April 1, 2020 to get the price

b. Determine the holding period rate of return (HPR) on this investment.

c. Determine the annual percentage rate of return on this investment (APR).

d. Determine the effective rate of return on this investment (EAR).

Thursday, January 23, 2020

Treasury Bills

Treasury bill bid and ask data are representative over-the-counter quotations as of 3pm Eastern time quoted as a discount to face value. Treasury bill yields are to maturity and based on the asked quote.

Maturity

Bid yield

Asked yield

Change

Asked yield

1/28/2020

1.460

1.450

unch.

1.475

6/11/2020

1.480

1.470

-0.013

1.491

6/18/2020

1.478

1.468

-0.002

1.493

6/25/2020

1.480

1.470

-0.005

1.495

7/2/2020

1.483

1.473

-0.005

1.498

7/9/2020

1.480

1.470

-0.005

1.496

7/16/2020

1.488

1.478

-0.013

1.504

7/23/2020

1.493

1.483

unch.

1.509

7/30/2020

1.505

1.495

-0.008

1.522

8/6/2020

1.508

1.498

-0.007

1.520

8/13/2020

1.513

1.503

-0.005

1.530

8/20/2020

1.518

1.508

-0.002

1.535

8/27/2020

1.518

1.508

+0.008

1.536

9/3/2020

1.513

1.503

-0.008

1.531

9/10/2020

1.520

1.510

+0.013

1.539

9/17/2020

1.508

1.498

+0.005

1.526

3/26/2020

1.503

1.493

+0.005

1.521

U.S. Treasury Quotes

Wednesday, April 01, 2020

  • Treasury Bills

Treasury bill bid and ask data are representative over-the-counter quotations as of 3pm Eastern time quoted as a discount to face value. Treasury bill yields are to maturity and based on the asked quote.

Maturity

Bid

Asked

Change

Asked yield

6/11/2020

0.073

0.063

+0.002

0.064

6/18/2020

0.085

0.075

+0.013

0.076

6/25/2020

0.075

0.065

+0.005

0.066

7/2/2020

0.093

0.083

-0.008

0.084

7/9/2020

0.080

0.070

+0.005

0.071

7/16/2020

0.110

0.100

+0.033

0.102

7/23/2020

0.128

0.118

+0.055

0.120

7/30/2020

0.140

0.130

+0.058

0.132

8/6/2020

0.105

0.095

+0.028

0.097

8/13/2020

0.115

0.105

+0.033

0.107

8/20/2020

0.123

0.113

+0.043

0.114

8/27/2020

0.115

0.105

+0.023

0.107

9/3/2020

0.125

0.115

+0.025

0.117

9/10/2020

0.140

0.130

+0.025

0.132

9/17/2020

0.083

0.073

+0.030

0.074

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