Question
An investor purchased a 364-day, $25,000.00 T-bill on its issue date for $24,215.31. After holding it for17 days, she sold the T-bill for a yield
An investor purchased a 364-day, $25,000.00 T-bill on its issue date for $24,215.31. After holding it for17 days, she sold the T-bill for a yield of 2.11%.
(a) What was the original yield of the T-bill?
(b) For what price was the T-bill sold?
(c) What rate of return (per annum) did the investor realize while holding this T-bill?
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Finance Of International Trade
Authors: Eric Bishop
1st Edition
0750659084, 978-0750659086
