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Unformatted text preview: stock, on or before a specific date, at a specific price. A. right, buy B. right, sell C. obligation, buy D. obligation, sell 5. On March 31, 2009, a T-bill quote sheet has the quotes with a 4.92 bid and a 4.86 ask. If the bill has a $1,000 face value, and 90 days to maturity, how much shall an investor pay to buy this T-bill? What is the bond equivalent yield based on the asked price of this T-bill? P=1000-4.86%*(90/360)*1000=987.85 Bond Equivalent Yield=(1000-987.85)/987.85*100%*(365/90)=4.99%...
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This note was uploaded on 03/20/2012 for the course FINA 469 taught by Professor Zhang during the Spring '08 term at South Carolina.
- Spring '08