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Problem # 1
Following T-bill quotation appeared in WSJ for February 20, 2020
Maturity Days to Maturity Bid Asked Change BEY
5/14/2020 ? 1.553 1.543 +0.007 ?
- How many days until maturity of this T-bill for all calculations?
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2. At what price will you be able to buy this bill (in dollars) ____________
3. At what price will you be able to sell this bill (in dollars) ____________________
4. Calculate the bond equivalent yield (BEY)______________________________________
5. What is the effective annual yield in percentage (Effective Rate)____________________
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