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See below the U.S. Treasury Quotes (T-bills) as of Friday, September 23, 2022, from the Wall Street Journal website. MATURITY 9/27/2022 9/29/2022 BID 2.363

 

See below the U.S. Treasury Quotes (T-bills) as of Friday, September 23, 2022, from the Wall Street Journal website. MATURITY 9/27/2022 9/29/2022 BID 2.363 2.198 ASKED 2.353 2.188 CHG +0.303 +0.178 ASKED YIELD 2.386 2.218 Calculate the prices of the government securities we can purchase (for both 9/27, and 9/29 maturities / Assume that the face value of the T-bill is $100). Explain how the asked yields (2.386 and 2.218) are calculated. The asked yield you calculated could be different from the quotes. Round the price to the nearest dollar amount and calculate the asked yield again. Calculate their effective annual yields. See below the U.S. Treasury Quotes (T-bills) as of Friday, September 23, 2022, from the Wall Street Journal website. MATURITY 9/27/2022 9/29/2022 BID 2.363 2.198 ASKED 2.353 2.188 CHG +0.303 +0.178 ASKED YIELD 2.386 2.218 Calculate the prices of the government securities we can purchase (for both 9/27, and 9/29 maturities / Assume that the face value of the T-bill is $100). Explain how the asked yields (2.386 and 2.218) are calculated. The asked yield you calculated could be different from the quotes. Round the price to the nearest dollar amount and calculate the asked yield again. Calculate their effective annual yields. See below the U.S. Treasury Quotes (T-bills) as of Friday, September 23, 2022, from the Wall Street Journal website. MATURITY 9/27/2022 9/29/2022 BID 2.363 2.198 ASKED 2.353 2.188 CHG +0.303 +0.178 ASKED YIELD 2.386 2.218 Calculate the prices of the government securities we can purchase (for both 9/27, and 9/29 maturities / Assume that the face value of the T-bill is $100). Explain how the asked yields (2.386 and 2.218) are calculated. The asked yield you calculated could be different from the quotes. Round the price to the nearest dollar amount and calculate the asked yield again. Calculate their effective annual yields.

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