excel hw .. see instructions below in the attached documents.
hussam316
HW101.docxHW 10, Problem 3, parts a-b (2 points)
In late September 2016, the US Treasury issued three T-Bills, and they had issued a one-year T-Bill on September 15, 2016:
|
|
4-Week |
13-Week |
26-Week |
52-Week |
|
Issue Date |
9/29/2016 |
9/29/2016 |
9/29/2016 |
9/15/2016 |
|
Maturity Date |
10/27/2016 |
12/29/2016 |
3/30/2017 |
9/14/2017 |
|
Face Value per $100 |
100 |
100 |
100 |
100 |
|
Price per $100 |
99.987556 |
99.936806 |
99.787667 |
99.363000 |
A. Calculate the bank discount rate for each security using the formula given in the chapter (=(FV – Price)/FV * 360/M, where M is the number of days until maturity) and using the DISC function.
B. Calculate the bond equivalent yield for each security using the formula given in the chapter (=(FV – Price)/Price * 365/M, where M is the number of days until maturity) and using the YieldDisc function.
