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You are considering buying a U.S. Treasury Bill with 90 days to maturity. The current price is $988.00 (with the maturity value being $1,000). Calculate

  1. You are considering buying a U.S. Treasury Bill with 90 days to maturity. The current price is $988.00 (with the maturity value being $1,000). Calculate what the interest rate would be (to the nearest basis point) if the Bill were priced using the following interest rate quotation processes. (Note: this price is low for the current interest rate environment.)
    1. Simple interest (holding period yield)
    2. Bank Discount Yield
    3. Money Market 360-Day Rate
    4. Money Market 365-Day Rate
    5. Effective Annual Rate (APY)

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