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(6 points) On December 8, 2020, Cecilia buys a T-Bill with a face value of $45000 maturing on February 27, 2021. She pays $44100. a)
(6 points) On December 8, 2020, Cecilia buys a T-Bill with a face value of $45000 maturing on February 27, 2021. She pays $44100. a) Find Cecilia's annualized yield rate. Answer = %. b) Find the simple (annual) rate of discount on the T-Bill. Answer = %. c) On January 9, 2021, Cecilia will sell the T-Bill to Delila at a price that provides Delila with a simple (annual) discount rate of 10%. i. How much will Delila pay to Cecilia? Answer = $ ii. Find Cecilia's annualized yield. Answer = %. (4 points) Find the effective bimonthly interest rate equivalent to: a) nominal annual interest of 11%, compounded 6 times per year; Answer = %. b) nominal annual discount of 9%, compounded quarterly; Answer = %. c) nominal annual interest of 6%, compounded continuously; Answer = %. (6 points) For a savings account with a nominal annual interest rate of 6.9% compounded weekly (52 times a year), find the equivalent: a) effective annual interest rate; i = %. b) effective annual discount rate; d %. c) nominal annual discount rate d(52) ; %. d(52) = d) nominal annual discount rate d(4); d(4) %. e) continuous compounding rate; i(00) %. =
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