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quiz_2s08 - FIN459-659 Quiz#2 You have 30 minutes to...

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1 FIN459-659 Quiz#2 You have 30 minutes to complete the quiz. The quiz is open book, open notes, open calculator. No consulting with other students is allowed. Good luck! 1. Treasury Bill futures quotations are based on the Treasury Bill IMM Index which is calculated as: a. 100 minus the APR on Treasury Notes b. The discount yield c. 100 minus the annual discount yield d. 100 minus the discount yield for the maturity of the T-bill. 2. The Treasury Bill futures invoice price is: a. The price you pay for the futures contract. b. The price you pay for a cash T-bill. c. The price you pay for a 90 day T-bill upon delivery at the maturity of the futures. d. The price of a 180 day cash T-bill. 3. The asked discount yield for a T-bill that has 80 days to maturity, a face value of $1,000,000 and an asked invoice price of $995,000 is: 4. Calculate the invoice price for a T-bill with a face value of $100,000, 165 days to maturity and a discount yield of 5% According to our discussion in class (and in the book) the T-Bill futures price can be expressed as: f o ( h ) = B o ( h + m ) B o ( h ) Using the above equation answer the following question.
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