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You want to buy a T-bill that will pay $1,000,000 when it matures in 190 days. Show excel calculations. a) If you want a discount
You want to buy a T-bill that will pay $1,000,000 when it matures in 190 days. Show excel calculations.
a) If you want a discount yield of 7.5% on the T-bill, what should be the purchase price?
b) What is the bond equivalent yield for the above T-bill? Report the bond equivalent yield to three decimals (for example 1.234%).
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