It is 25 July 2022; you observe two treasury bills Maturity 25 September 2022, Price 99.7985 Maturity 25 March 2023 , Price 98.3855 a) What are appropriate discount factors for 2 months and 8 months? b) Whatarethespotrates,withsemi-annualcompounding,for 2months and 8 months?
It is 25 July 2022; you observe two treasury bills Maturity 25 September 2022, Price 99.7985 Maturity 25 March 2023 , Price 98.3855 a) What are appropriate discount factors for 2 months and 8 months? b) Whatarethespotrates,withsemi-annualcompounding,for 2months and 8 months?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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It is 25 July 2022; you observe two treasury bills
Maturity 25 September 2022, Price 99.7985
Maturity 25 March 2023 , Price 98.3855
a) What are appropriate discount factors for 2 months and 8 months?
b) Whatarethespotrates,withsemi-annualcompounding,for 2months and 8 months?
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