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Within the next 150 days Julio would like to sell $200,000 T-bill which matures in 365 days. The current annual yield is 3%. He is
Within the next 150 days Julio would like to sell $200,000 T-bill which matures in 365 days. The current annual yield is 3%. He is also thinking about waiting the 150 days, selling his T-bill as an interest rate future contract and by doing so earn at least 5% as annual return on the investment. if Julio waited the 150 days at what price is he hoping to sell a future on his t bill?
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To calculate the price at which Julio is hoping to sell a future on his Tbill after waiting 150 days ...
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