# FIN4063 UTulsa Financial Institutions And Markets Chapter 11 Homework

• What are the annualized discount rate and your annualized investment rate on a Treasury bill that you purchase for \$9,940 that will mature in 91 days for \$10,000?
• If you want to earn an annualized discount rate of 3.5%, what is the most you can pay for a 91-day Treasury bill that pays \$5,000 at maturity?
• The price of 182-day commercial paper is \$7,840. If the annualized investment rate is 4.093%, what will the paper pay at maturity?
• The annualized yield is 3% for 91-day commercial paper and 3.5% for 182-day commercial paper. What is the expected 91-day commercial paper rate 91 days from now?
• In a Treasury auction of \$2.1 billion par value 91-day T-bills, the following bids were submitted:
• If the Treasury also received \$750 million in non- competitive bids, who will receive T-bills, in what quantity, and at what price? (Refer to the table in problem 5.)
• Up-to-date interest rates are available from the Federal Reserve at http://www.federalreserve.gov/ releases. Locate the current rate on the following securities:
• Prime rate
• Federal funds
• Commercial paper (financial)
• Certificates of deposit
• Discount rate
• One-month Eurodollar deposits
 Bidder Bid Amount (\$ million) Price per \$100 1 600 99.4 2 750 99.01 3 1 99.25 4 1.5 99.36 5 500 99.39

If only these competitive bids are received, who will receive T-bills, in what quantity, and at what price?