Abbey bought a 182-day T-bill that has an interest rate of 4% p.a. and a face value of $25,000.

a. b. How much did she pay for the T-bill? After 90 days, she sold the T-bill to her friend when the interest rate for this T-bill in the market increased to 4.25% p.a. What was her selling price and profit or loss on the transaction? C. What rate of return did she realize while holding the T-bill?

AppendixLO1