Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Of Capital In Managerial Finance

Authors: Dennis Schlegel

2015th Edition

3319151347, 978-3319151342

More Books

Students also viewed these Finance questions