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EXAMPLE: If you want to purchase 152 days Treasury Bills with the face value of...

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Finance

EXAMPLE: If you want to purchase 152 days Treasury Bills with the face value of K 50 000 you require an interest rate of 10%. (i) Determine the price you are going to pay for the Treasury Bills. (ii) Determine the interest income if you buy the T.B (b).Suppose you purchase a T-Bill that is 125 days from maturity for K9, 765, 000. The T-bill has a face value of K10, 000, 000. Calculate the T-bills discount yield and bond equivalent yield. What is the difference between the two expressions?

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