Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A 3-month Treasury bill (TBill 1) is issued onto the market with a face value of 100. The bill is bought on the primary market

image text in transcribed A 3-month Treasury bill (TBill 1) is issued onto the market with a face value of 100. The bill is bought on the primary market at 95, the following day a new 3month Treasury bill (TBill 2 ) is bought on the primary market at 94. The approximate annualised return on the (TBill 1) on issue was: Select one: a. 5.26% and its price will fall on the secondary market. b. 21.05% and its price will fall on the secondary market. c. 21.05% and its price will rise on the secondary market. d. 5.26% and its price will rise on the secondary market. A 3-month Treasury bill (TBill 1) is issued onto the market with a face value of 100. The bill is bought on the primary market at 95, the following day a new 3month Treasury bill (TBill 2 ) is bought on the primary market at 94. The approximate annualised return on the (TBill 1) on issue was: Select one: a. 5.26% and its price will fall on the secondary market. b. 21.05% and its price will fall on the secondary market. c. 21.05% and its price will rise on the secondary market. d. 5.26% and its price will rise on the secondary market

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

American Public School Finance

Authors: William A. Owings, Leslie S. Kaplan

3rd Edition

113849996X, 978-1138499966

More Books

Students also viewed these Finance questions

Question

Explain the factors influencing wage and salary administration.

Answered: 1 week ago

Question

Examine various types of executive compensation plans.

Answered: 1 week ago

Question

1. What is the meaning and definition of banks ?

Answered: 1 week ago