A. Look again at Problem 29. Suppose another month has passed, so the bill has only one month left.. 1 answer below »

A. Look again at Problem 29. Suppose another month has passed, so the

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A. Look again at Problem 29. Suppose another month has passed, so the bill has only one month left.. 1 answer below »
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bill has only one month left to run. It is now selling at a discount of 3%. What is the yield?

What was your realized return over the two months?

B. For each item below, choose the investment that best fits the accompanying description:

a. Maturity often overnight (repurchase agreements/bankers’ acceptances).

b. Maturity never more than 270 days (tax-exempts/commercial paper).

c. Issued by the U.S. Treasury (tax-exempts/three-month bills).

d. Quoted on a discount basis (certificates of deposit/Treasury bills).

e. Sold by auction (tax-exempts/Treasury bills).