Question
Sager Inc. just purchased a 91-day, $1 million T-bill that was selling at a discount of 3.35 percent. Assume a 360-day year. 1. Calculate the
Sager Inc. just purchased a 91-day, $1 million T-bill that was selling at a discount of 3.35 percent. Assume a 360-day year.
1. Calculate the dollar discount. Round your answer to the nearest cent. $ 2. Calculate the purchase price on this T-bill. Round your answer to the nearest cent. $ 3. Find the money market yield (MMY) on this T-bill. Round your answer to three decimal places. % 4. Find the bond equivalent yield (BEY) on this T-bill. Round your answer to three decimal places. % 5. Rework the dollar discount from part (a) assuming the T-bill was selling at a 4.0% discount. Round your answer to the nearest cent. $ 6. Rework the purchase price from part (a) assuming the T-bill was selling at a 4.0% discount. Round your answer to the nearest cent. $ 7. Rework the money market yield (MMY) from part (b) assuming the T-bill was selling at a 4.0% discount. Round your answer to three decimal places. % 8. Rework the bond equivalent yield (BEY) from part (c) assuming the T-bill was selling at a 4.0% discount. Round your answer to three decimal places. %
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