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these four questions are related to one question, so please help me solve these 4!!! Answer the next 4 questions using the information in the

these four questions are related to one question, so please help me solve these 4!!! image text in transcribed
image text in transcribed
Answer the next 4 questions using the information in the following table. Fou are considering the purchase of a $1.000 par value Treasury Bill and observe the following quotes for T-Bills in the market: Ignore transaction costs. Time to Maturity Bid Asked (days) % % 60 1.55 1.63 1.54 116 1.62 144 1.61 1.64 88 153 1.52 4. The bid price of a T-bill in the secondary market is A. the price at which the dealer in T-bills is willing to sell the bill. B. the price at which the dealer in T-bills is willing to buy the bill. C. larger than the asked price of the T-bill. D. The price at which the investor can buy the T-bill. 5. What is the purchase price of the 144-day bill that you face? A. $993.29 B. $993.92 C. $994.05 D. $993.56 6. What would be the effective annual rate of retum on your investment if you held maturity? investment if you held the bill until A. 1.56% B. 1.65% C. 1.54% D. 1.72% 1. What would be the effective annual rate of return on your investment if you bought this om today! and were able to sell it back to a dealer after 28 days, assuming that yields do not changed time? A. 1.61% B. 0.38% C. 1.13% D. 1.52%

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