Question
An investor purchased a 182-day, $25,000.00 T-bill on its issue date for $24,788.87. After holding it for 88 days, she sold theT-bill for a yield
An investor purchased a 182-day, $25,000.00 T-bill on its issue date for $24,788.87. After holding it for 88 days, she sold theT-bill for a yield of 1.64%.
(a) What was the original yield of theT-bill?
(b) For what price was theT-bill sold?
(c) What rate of return(per annum) did the investor realize while holding thisT-bill?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
17th Edition
1260247783, 978-1260247787
