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1. (15%) You buy a T-bill with a face value of $100,000 and a remaining maturity of 6 months. This T-bill offers an annualized
1. (15%) You buy a T-bill with a face value of $100,000 and a remaining maturity of 6 months. This T-bill offers an annualized interest rate of 3% on a discount basis. (a) What should the market price now? (b) How much money do you expect to receive at the end of 6 months? (c) What is the effective annual rate (EAR) if you plan to hold this T-bill until maturity?
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
