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You purchase a $1 million face value 120 day t-bill at a discount yield of 5 percent a) What is the price of the bill?
You purchase a $1 million face value 120 day t-bill at a discount yield of 5 percent
a) What is the price of the bill?
b) What is your simple interest yield and bond-equivalent yield?
c) What is your profit or loss if you repo the bill for 120 days at a repo rate of 5 percent, which is same as the discount rate on the bill?
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