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5-6 both xx 5. Alice bought a 91 -day $25,000 Canadian treasury bill (T-bill) to yield r=3.5%. She sold the T-bill 40 days later to
5-6 both xx 5. Alice bought a 91 -day $25,000 Canadian treasury bill (T-bill) to yield r=3.5%. She sold the T-bill 40 days later to another investor who wishes to yield r=3.25%. What price did the T-bill sell for? (A) $25,104.15 (B) $25,089.04 (C) $24,886.99 (D) $24,880.37 6. You invest $40,000. It earns simple interest at 7% for the first 3 months, 6% for the next 4 months and 5% for the last 5 months. What is the accumulated value at the end of 12 months? (A) $42,396.63 (B) $42,332.13 (C) $42,378.88 (D) $42,333.33
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