You are the treasury manager at Fina$-$Gold Mines. You realise that there is surplus funds of $2,000,000$ in the company's bank account and you have decided to invest it in Treasury Bills. You approach Bank of Ghana and you were offered a $$2,000,000$ Treasury Bill at a discount yield of $25\%$ with the following maturity options:

$45$ days

$60$ days

$90$ days

$135$ days

$182$ days, $200$ days, $250$ days, $300$ days and $350$ days

Calculate the price and the cedi discount in each case and explain the relationship between the price, time and the discounts on the bills.$(25$marks$)$

A $91-$day treasury bill is rolled over during the year, the Coupon Equivalent Yield $($CEY$)$ on the bill is $15\%.$ What is the effective annual yield $($EAY$)?$

Consider a bond with a coupon rate of $10\%$ and coupons paid annually. The par value is $$1000$ and the bond has $5$ years to maturity. The yield to maturity is $11\%.$

What is the value of the bond?

$8.$ An investor buys a $9\%$ coupon bond at a price of $8,500,000$ cedis on $1$st January $2019.$ At $31$st December $2019,$ he needed money to spend with his family in the new year and thus sold the bond for $9,125,000$ cedis. During the $12$ months of holding the bond, he received a coupon amounting to $765,000$ cedis. Calculate the one$-$year holding period return on the bond for this investor.

What is the current yield on the bond?