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1. Let us suppose that a treasury bill that is being sold for $1,017, will buy it back from you for $1,263 in two years.
1. Let us suppose that a treasury bill that is being sold for $1,017, will buy it back from you for $1,263 in two years. Determine the effective interest rate of this treasury bill.
2. A treasury bill which sells at $9,480 promises that in 4 years, it will pay you $12,370 for it. Determine the effective interest rate on this Treasury Bill.
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