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Q2. In the following are Treasury bill quotes from the Wall Street Journal (i.e. quoted based on the bank discount yield, Ekn = (FV-P)/FV)*(360)). Compute the quoted (ask) yield and the effective (annual) rate for an instrument with a 4-week to maturity in 24 days (i.e. 24 days ahead)? (Assume a 360-day year, if needed) Bid Days to Mat. 24 52 80 4.34 4.33 4.34 4.33 4.35 4.36 Asked 4.26 4.29 4.32 4.31 4.33 4.34 108 136 164 O A. Quoted ask yield is 4.33%and the effective annual rate is 4.36%. B. Quoted ask yield is 4.28% and the effective annual rate is 4.33%. C. Quoted ask yield is 4.33% and the effective annual rate is 4.22%. D. Quoted ask yield is 4.22% and the effective annual rate is 4.22%. E. None of the above Q2. In the following are Treasury bill quotes from the Wall Street Journal (i.e. quoted based on the bank discount yield, Ekn = (FV-P)/FV)*(360)). Compute the quoted (ask) yield and the effective (annual) rate for an instrument with a 4-week to maturity in 24 days (i.e. 24 days ahead)? (Assume a 360-day year, if needed) Bid Days to Mat. 24 52 80 4.34 4.33 4.34 4.33 4.35 4.36 Asked 4.26 4.29 4.32 4.31 4.33 4.34 108 136 164 O A. Quoted ask yield is 4.33%and the effective annual rate is 4.36%. B. Quoted ask yield is 4.28% and the effective annual rate is 4.33%. C. Quoted ask yield is 4.33% and the effective annual rate is 4.22%. D. Quoted ask yield is 4.22% and the effective annual rate is 4.22%. E. None of the above

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