Current Treasury-bill yields are approximately 2 percent. Assume an investor considering the purchase of a newly-issued three-month

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Current Treasury-bill yields are approximately 2 percent. Assume an investor considering the purchase of a newly-issued three-month Treasury bill expects interest rates to increase within the next three months and has a required rate of return of 2.5 percent. Based on this information, how much is this investor willing to pay for a three-month Treasury bill?
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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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