T-bill: A brand new 270 day T-bill has an Asked price of 4.
1. T-bill: A brand new 270 day T-bill has an Asked price of 4.12. What is (a) the cost of the T-bill ($10,000 face); (b) the Ask Yld (BYE); (c) the effective interest rate; and, (d) the tax equivalent yield (assume your state tax rate is 8% and your federal tax rate is 28%)?2. Repos. You execute a three day $75 million (face value) Repo […]