Question
Suppose you see a T Bill quoted as bid = 2%, ask = 1.5%. Par value is $10,000 and the security matures in 60 days.
Suppose you see a T Bill quoted as bid = 2%, ask = 1.5%. Par value is $10,000 and the security matures in 60 days.
a) What is the ask price? ($ 9975)
b) What is the bid price for the T Bill above. ($9966.67)
c) What is the Bond equivalent yield? (1.525%)
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
