A T-bill with face value $10,000 and 86 days to maturity is selling at a bank discount ask yield of 3.3%. a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of the bill

A T-bill with face value $10,000 and 86 days to maturity is selling at a bank discount ask yield of 3.3%. a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of the bill

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3PA

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Question A

Full explain this question and text typing work only
We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line.

S
A T-bill with face value $10,000 and 86 days to maturity is selling at a bank discount ask yield of 3.3%.
a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal
places.)
Price of the bill
b. What is its bond equivalent yield? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal
places.)
Bond equivalent yield
%

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