6. What would be the effective annual rate of return on your investment if you held the bill until maturity? A. 1.53% В. 1.56% С. 1.65% D. 1.72% 7. What would be the effective annual rate of return on...

Extracted text: 6. What would be the effective annual rate of return on your investment if you held the bill until maturity? A. 1.53% В. 1.56% С. 1.65% D. 1.72% 7. What would be the effective annual rate of return on your investment if you bought this bill today and were able to sell it back to a dealer after 28 days, assuming that yields do not change over time? A. 1.31% В. 1.61% C. 1.53% D. 1.13%


Extracted text: Answer the next 4 questions using the information in the following table. You are considering the purchase of a $1,000 par value Treasury Bill and observe the following quotes for T-Bills in the market: Ignore transaction costs. Time to Maturity (days) Bid Asked % % 60 1.64 1.55 88 1.63 1.54 116 1.62 1.53 144 1.61 1.52 4. The bid price of a T-bill in the secondary market is A. the price at which the dealer in T-bills is willing to sell the bill. B. the price at which the investor in T-bills is willing to sell the bill. C. larger than the ask price of the T-bill. D. The price at which the investor can buy the T-bill. 5. What is the purchase price of the 144-day bill that you face? А. $993.29 B. $993.56 С. $993.92 D. $994.05