Question
The US Treasury just issued Treasury bills with the following maturities and discount rates.
What is the expected discount rate of a Treasury bill to be issued when the first bill matures that matures when the second bill matures. Give your answer to 4 decimal places. Write 3.6526% as 3.6526 not 0.036526.
| Maturity in Weeks |
Discount Rate |
| 12 |
2.50% |
| 24 |
3.50% |