The quote in the WSJ for the Treasury bill with face value of $$1,000$ is as follows:

Time to Maturity $($days$)$ Bid Yield Ask Yield

$881\mathrm{.}61\%1\mathrm{.}52\%$

$1161\mathrm{.}62\%1\mathrm{.}53\%$

$1721\mathrm{.}64\%1\mathrm{.}55\%$

Answer the following $4$ questions using information in above table.

$3.$ The ask price of a T$-$bill in the secondary market is

A$.$ the price at which the investor can sell the bill.

B$.$ the price at which the dealer in T$-$bills is willing to buy the bill.

C$.$ less than the bid price of the T$-$bill.

D$.$ the price at which the investor can buy the T$-$bill

$4.$ What are the purchase prices of the $116-$day and $172-$day bills that you face respectively?

A$.$ $$995\mathrm{.}07,$ $$992\mathrm{.}16$

B$.$ $$994\mathrm{.}78,$ $$992\mathrm{.}16$

C$.$ $$995\mathrm{.}07,$ $$992\mathrm{.}59$

D$.$ $$994\mathrm{.}78,$ $$992\mathrm{.}59$

$5.$ What would be the effective annual yields respectively for the $116-$ and $172-$day bills if you hold

them to maturity?

A$.1\mathrm{.}57\%,1\mathrm{.}59\%$

B$.1\mathrm{.}54\%,1\mathrm{.}57\%$

C$.1\mathrm{.}59\%,1\mathrm{.}57\%$

D$.1\mathrm{.}57\%,1\mathrm{.}54\%$

$4$

$6.$ What would be the effective annual yield on your investment if you buy the $172-$day T$-$bill today

and sell it back to a dealer after $84$ days, assuming yields do not change over time?

A$.1\mathrm{.}45\%$

B$.1\mathrm{.}48\%$

C$.1\mathrm{.}53\%$

D$.1\mathrm{.}56\%$