A $100,000, 168-day Government of Canada Treasury bill was purchased on its date of issue to yield 2.2 percent. (Hint: for short-term investments, we should automatically assume simple interest.)

a) What price did the investor pay (two decimals)?

b) Calculate the market value of the T-bill 86 days from the issue date of return then required by the market has risen to 2.4% (two decimals). (Hint: t is the time to maturity.)

c) Assume that the investor sold the T-bill 86 days from the date of issue. Calculate the annualized rate of return realized by the investor (% to two decimals).