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12. An investment dealer bought a $25 000 Treasury bill for $23 892.06 on September 9, 2020. The maturity date of the Treasury bill is
12. An investment dealer bought a $25 000 Treasury bill for $23 892.06 on September 9, 2020. The maturity date of the Treasury bill is September 8, 2021. For each of the questions, perform the calculations assuming the T-bill is issued in Canada and in the USA. a) What yield rate is implied? b) The dealer sold the Treasury bill to another investor on January 25, 2021, for $24 102.25. What yield rate did the other investor wish to earn? What rate of return did the dealer end up earning
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