Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sarah, a portfolio manager plans to buy 1-month Treasury bills in 2 months. The total face amount of securities she plans to buy is $15
Sarah, a portfolio manager plans to buy 1-month Treasury bills in 2 months. The total face amount of securities she plans to buy is $15 million. The current price for 3-month Treasury bills is $994,483 per $1 million face amount. The current, effective, annual risk-free rate over the 2 months is 1.11 percent. Calculate the fair total forward price.
My professor marked 14,944,854.67 as the right answer but i got something different
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started