A Treasury bill has a bid yield of 2.91% and an ask yield of 2.89%. The bill mat
ID: 2632902 • Letter: A
Question
A Treasury bill has a bid yield of 2.91% and an ask yield of 2.89%. The bill matures in 129 days. Assume a face value of $1,000. What is the dollar spread for this bill? (Do not round intermediate calculations. Round your answer to 3 decimal places. Omit the "$" sign in your response.)
A Treasury bill has a bid yield of 2.91% and an ask yield of 2.89%. The bill matures in 129 days. Assume a face value of $1,000. What is the dollar spread for this bill? (Do not round intermediate calculations. Round your answer to 3 decimal places. Omit the "$" sign in your response.)
Explanation / Answer
Dollar Spread=(Bid Yield-ask yield)*129/365 or Dollar Spread=(2.91-2.81)*129/365*1000 35.34
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