Question
1. On May 22nd, Mary purchased a 6-month Government of Canada T-bill with a face value of $12,000 and a rate that would yield a
1. On May 22nd, Mary purchased a 6-month Government of Canada T-bill with a face value of $12,000 and a rate that would yield a 3.02% return. There is 169 days remaining in the term. Mary then sold the T-bill 30 days later on June 21st when the rate was at 2.05%. (Hint: a timeline might be helpful)
(a) How much did Mary pay for the T-bill when she purchased it on May 22nd?
(b) What was the price that Mary sold the T-bill at June 21st?
(c) What is the rate of return realized by Mary from the sale of the T-bill?
2. Steve agreed to pay you $1,500 6 months ago and then another $500 today. Steve wasn't able to pay you the $1,500, so he offers to pay you $2,100 today. If money can earn 3.50%, would you accept his payment for full settlement of the debt?
3.The current exchange rates show that C$1.00 = US$0.9672. If you have $120 Canadian dollars, what is the equivalent amount in US dollars?
Select one:
a.$143.71
b.$120.97
c.$116.06
d.$124.07
4.How many days are between October 18, 2020 and April 3, 2021?
Select one:
a.166 days
b.168 days
c.165 days
d.167 days
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started