Question
An investor purchased a 364-day, $5000.00 T-bill on its issue date for $4886.19. After holding it for 207days, she sold the T-bill for a yield
An investor purchased a 364-day, $5000.00 T-bill on its issue date for $4886.19. After holding it for 207days, she sold the T-bill for a yield of 2.12%.
(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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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
