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2 ) Solve the following problems involving Treasury Bills. The yield rates for Canadian Treasury Bills are a simple interest rate based on a 3
Solve the following problems involving Treasury Bills. The "yield" rates for Canadian Treasury Bills are a simple interest rate based on a day year. The "rates" for a US Treasury Bill are stated as a simple rate of discount based on a day year.
a Jeff buys Canadian Treasury Bills maturing for $ in days with a yield of How much does Jeff pay for this investment.
b A US Treasury Bill with a week maturity sells at a price of per $ maturity. Find the discount rate on this Treasury Bill.
c A US Treasury Bill with a week maturity sells at a rate of Find the price per $ maturity.
d A Canadian Treasury Bill matures in weeks and at a price of per $ maturity. Find the yield rate on this Treasury Bill.
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