7. On July 19, 2020, you picked up the Wall Street Journal and observed the following T- Quote. Find the following assuming the Face Value is $100 dollars. a. The Bid Price. b. The Ask Price. C. Confirm the Ask Yield. d. What was the Bid Banker Discount Yield yesterday? e. How much could the market Maker Earn if $100,000 dollars of Treasury Bills were bought at the Bid Quoted Price and Sold at Ask Quoted Price
7. On July 19, 2020, you picked up the Wall Street Journal and observed the following T- Quote. Find the following assuming the Face Value is $100 dollars. a. The Bid Price. b. The Ask Price. C. Confirm the Ask Yield. d. What was the Bid Banker Discount Yield yesterday? e. How much could the market Maker Earn if $100,000 dollars of Treasury Bills were bought at the Bid Quoted Price and Sold at Ask Quoted Price
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please answer as many parts as possible
Transcribed Image Text:7. On July 19, 2020, you picked up the Wall Street Journal and observed the following T- Quote.
Find the following assuming the Face Value is $100 dollars.
a. The Bid Price.
b.
The Ask Price.
C.
Confirm the Ask Yield.
d.
What was the Bid Banker Discount Yield yesterday?
e. How much could the market Maker Earn if $100,000 dollars of
Treasury Bills were bought at the Bid Quoted Price and Sold at Ask Quoted Price
Transcribed Image Text:ISSUE
1/4/21 169 d
Bid
5.08%
ISSUE
6½ 1/15/19
Ask
5.06%
Bid
105.08+
7. Given the following quote for a Treasury Bond, find the actual Bid Quote and Ask Quote,
assuming the Face Value or Par Value is 100 dollars. If the market maker bought and sold
2 million worth of these bonds, how much income would the market maker make?
Change
-.03
Ask
12
Ask Yield
5.26%
Change
+3
Ask Yield
5.57%
COM
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