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A $50,000, 179-day Government of Canada Treasury bill was purchased on its date of issue to yield 1.2%. (Do not round intermediate calculations and round
A $50,000, 179-day Government of Canada Treasury bill was purchased on its date of issue to yield 1.2%. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What price did the investor pay? E Purchase price $ b. Calculate the market value of the T-bill 91 days later if the rate of return then required by the market has: Market value $ (i) Risen to 1.5% (ii) Remained at 1.2% (iii)Fallen to .9% c. Calculate the rate of return actually realized by the investor if the T-bill is sold at each of the three prices calculated in Part (b). % (i) r = (ii) r = (iii)r = % % A $50,000, 179-day Government of Canada Treasury bill was purchased on its date of issue to yield 1.2%. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What price did the investor pay? E Purchase price $ b. Calculate the market value of the T-bill 91 days later if the rate of return then required by the market has: Market value $ (i) Risen to 1.5% (ii) Remained at 1.2% (iii)Fallen to .9% c. Calculate the rate of return actually realized by the investor if the T-bill is sold at each of the three prices calculated in Part (b). % (i) r = (ii) r = (iii)r = % %
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