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3.Interest rate calculations: Suppose a Treasury bill with 72 days to maturity is quoted at...

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3.Interest rate calculations: Suppose a Treasury bill with 72 days to maturity is quoted at an ask of 4.43% on a bank discount basis. Calculate the price, the bond equivalent yield, and the effective annual yield. A 90-day negotiable CD is quoted at 4.75%. Convert the yield to a bond-equivalent basis Verify the reported YTM on the quotes shown below (prices % of par). a. b, c. September 15, 2014 Treasury Quote Maturity Coupon Bid Ask tm 9/15/2017 99.7969 99.8359 0.0469 1.056 July 15, 2014 TIPS Quote Maturity 2020 Jul 15 Coupon Bid Ask Adi Par 1.25 109.063 109.163 0.264 1088

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