What your be the yield on this strategy

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Reference no: EM13269825

Determine the prices of a 3 month and a 6 month treasury bill assuming that the 3 month yield is 1.56% and the 6 month yield is 1.97%. Assume that the face value of the security is $100. What would be your yield assuming that you purchases a 6 month security and sold it after 3 months, assuming that there was no change in interest rate. What would be the yield on this trading strategy ? What would be your yield on selling the security if there was an immediate increase in interest rates by 100 basis points over the entire yield curve after you purchased the 6 month security? What your be the yield on this strategy if there was an immediate decrease in interest rates by 100 basis points over the entire yield curve after you purchased the 6 month security.

Reference no: EM13269825

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