Fin352
XiaomingXu
TBillRates_Assignment11.xlsSheet1
| Time to Maturity | Bid | Asked |
| (days) | % | % |
| 60 | 1.6 | 1.51 |
| 88 | 1.61 | 1.52 |
| 116 | 1.62 | 1.53 |
| 172 | 1.64 | 1.55 |
| Par = $1,000 | ||
| 1. What is the purchase price of the 60, 116, and 172-day bill that you face? | ||
| Price = | ||
| 2. What would be the effective annual rate of return on your investment if you held the bill until maturity? (for all three bills) | ||
| 3. Which T-bill will you invest in? Assume you will hold it to maturity. | ||
| 4.What would be EAR if you bought this bill today and sell it back to a dealer after 84 days, assuming that yields do not change over time? | ||
| (Bonus Question) | ||
| Results should be presented using 4-decimal places for rates and 3-decimal places for prices. |
Sheet2
Sheet3
172
$1,0001$1,00010.0151$992.79
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116
$1,0001$1,00010.0153
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116$1,0001$1,00010.0153360360BDnr
365/
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Discount
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365/11PrnDiscountrice
$1,0001
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$1,0001360BDnr
