Show steps for each of the following questions 1. You are purchasing a $10,000,0

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Show steps for each of the following questions

1. You are purchasing a $10,000,000.00 U.S. Treasury Bill that matures in 28 days and is quoted as a 6.46% discount rate. What is the ask yield if you hold this T-bill to maturity?

2.You are purchasing a $8,000,000.00 Money Market CD that matures in 185 days and is quoted at 2.44% interest at maturity. At maturity you receive how much?

3.You are purchasing a $6,750,000.00 Money Market CD that matures in 23 days and is quoted as a 3.37% interest at maturity. How much interest will you earn if you hold this CD to maturity? And what is the straight yield if you hold this CD to maturity?

4.You are purchasing a $6,750,000.00 Money Market CD that matures in 56 days and is quoted at 0.83% interest at maturity. The price of this CD is

Explanation / Answer

1. 6.49%

2.8000000 +98937 = 8098937

3.14533, total interest

straight yield = .215%

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