Suppose an investor purchases a treasury bill that matures in 130 days and has a face value of $1 million. The price at purchase is $987,645.93. Thirty days later, she sells the security. The annualized (bond equivalent) realized return on the investment is 1.00%. Answer the following questions [for each calculation, you must enter your final answer in the space provided AND upload a file to show your work]:

1.Calculate the bond equivalent yield at the time of purchase [Express your answer in percentage terms, rounded to two decimal places (e.g. 5.67%)]:

2.

Calculate the bond equivalent yield at the time of sale [Express your answer in percentage terms, rounded to two decimal places (e.g. 5.67%)]:

3.

Calculate the effective annual rate of return (EAR) at the time of sale. [Express your answer in percentage terms, rounded to four decimal places (e.g. 5.6789%)]:

4.

Carefully explain why the expected return at the time of purchase differs from the actual realized return of 1.00%.