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A $26,300, 91-day Province of Newfoundland Treasury bill was originally purchased at a price that would yield the investor a 5.438% rate of return if
A $26,300, 91-day Province of Newfoundland Treasury bill was originally purchased at a price that would yield the investor a 5.438% rate of return if the T-bill is held until maturity. Thirty-four days later, the investor sold the T-bill through his broker for $26,175. a. What price did the original investor pay for the T-bill? (Do not round the intermediate calculations. Round your answer to the nearest cent.) Price $ b. What rate of return did the first investor realize during his holding period? (Do not round the intermediate calculations. Round your answer to three decimal places.) Rate of return 1% c. If the broker sells the t-bill to a second investor for $26,175, what rate of return will the second investor realize if he or she holds the t-bill until maturity? (Do not round the intermediate calculations. Round your answer to three decimal places.) Rate of return %
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