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1 1 . Assume an investor has a price objective of $ 1 0 , 0 0 0 for a 9 0 - day Treasury
Assume an investor has a price objective of $ for a day Treasury bill with a face value of $ and a current market yield of The investor plans to hold the bill until maturity and has a desired rate of return of
a What is the purchase price of the Treasury bill that would allow the investor to achieve their price objective?
b If interest rates rise by before the Treasury bill matures, what is the potential loss in price and yield for the investor?
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