What continuously compounded return does an investor earn

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1. The price of a 90-day Treasury bill is quoted as 10.00. What continuously compounded return (on an actual/365 basis) does an investor earn on the Treasury bill for the 90-day period?

2. It is May 5, 2011. The quoted price of a government bond with a 12% coupon that matures on July 27, 2014, is 110-17. What is the cash price?

3. Suppose that the Treasury bond futures price is 101-12. Which of the following four bonds is cheapest to deliver?

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Reference no: EM131235865

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