1. True or False. Provide at least five sentences of Explanations or calculation. A repurchase agreement calls for an investor to buy securities for $4,925,000 and sell them back in 60 days for $5,000,000 and investor earns the yield of 9.26%.
2. True or False. Provide at least five sentences of Explanations or calculation. An investor buys a T-bill with 180 days to maturity and $250,000 par value for $242,000. He plans to sell it after 60 days, and forecasts a selling price of $247,000 at that time. The annualized yield based on this expectation is 12.57%?
3. True or False. Provide at least five sentences of Explanations or calculation. The discount yield of a newly issued T-bill with a $10,000 par value sells for $9,950, and has a 60-day maturity is 3.5%