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A U.S. T-bill that matures for 10,000 in 90 days costs 9,800. A Canadian T-bill that matures for 10,000 in 180 days costs 9,600. Let
A U.S. T-bill that matures for 10,000 in 90 days costs 9,800. A Canadian T-bill that matures for 10,000 in 180 days costs 9,600.
Let x and y be the quoted rate of the U.S. T-bill and Canadian T-bill, respectively.
Calculate 1,000(yx).
A) -0.5
B) -2.8
C) 1.1
D) 2.2
E) 4.5
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