Yuan purchased a 364-day T-bill that had a face value of $5000 and an interest rate of
Question:
Yuan purchased a 364-day T-bill that had a face value of $5000 and an interest rate of 6% p.a.
a. How much did he pay for the T-bill?
b. After 180 days, he sold the T-bill to Liam when the interest rate for this T-bill in the market was 5% 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?
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Related Book For 
Mathematics Of Business And Finance
ISBN: 9781927737545
4th Edition
Authors: Larry Daisley, Thambyrajah Kugathasan, Diane Huysmans
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