1. An investor purchased a 91-day, $10,000.00 T-bill on its issue date for $9941.56. After holding it for 71 days, she sold the T-bill for a yield of 1.77%. (a) What was the original yield of the T-bill?

(a) The original yield of the T-bill was 2.362.36%.

(b) For what price was the T-bill sold?

(c) What rate of return (per annum) did the investor realize while holding this T-bill?

(Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)

2. The annual Sport Club membership fees of $2250 are due on July 28, 2018. Club management offers a reduction of membership fees of 19.5%

p.a. to members who pay the dues by May 29, 2018. How much must a member pay on May 29, 2018, if she chooses to take advantage of the club management's offer?

(a) She must pay _____________

3. New Grains Cooperative wants to invest $49,000 in a short-term deposit. The bank offers 1.2% interest for a one-year term and 1.1% for a six-month term.

(a) How much would New Grains receive if the $49,000 is invested for one year?

(b) How much would New Grains receive at the end of one year if the $49,000 is invested for six months and then the principal and interest earned is reinvested for another six months?

(c) What would the one-year rate have to be to yield the same amount of interest as the investment described in part (b)?