1. The newly issued one-year (zero-coupon) Treasury bill is yielding 5%. Its par value is $10,000.
   1. What is the market price of this security?
   2. What is the duration of this security?
   3. Say that interest rates rise by 50 basis points this afternoon. What is the price impact on the above bill? How well does the duration capture the interest-rate sensitivity of this bill?
   4. If other zero-coupon treasuries with exactly one year to maturity are yielding 5.5%, is the above treasury bill over-valued or under-valued? By how much?