Kenneth bought a 182-day T-bill that had a face value of $1000 discounted at 2.3% p.a.

a. How much did he pay for the T-bill?

b. After 45 days, if he sold the T-bill to his friend when the interest rate for the T-bill in the market was 2% p.a., calculate his selling price and profit or loss on the transaction.

c. What rate of return did he realize while holding the T-bill?

AppendixLO1