Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor purchased a 364-day, $5000.00 T-bill on its issue date for $4882.71. After holding it for 171 days, she sold the T-bill for a

image text in transcribed
An investor purchased a 364-day, $5000.00 T-bill on its issue date for $4882.71. After holding it for 171 days, she sold the T-bill for a yield of 1.86% (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? (a) The original yield of the T-bill was 7% (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.) (b) The T-bill sold for $( (Round the final answer to the nearest cont as needed. Round all Intermediate values to six decimal places as needed.) (c) The investor realized a rate of return of 17%. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

=+21.4. 20.141 Show that the Cauchy distribution has no mean.

Answered: 1 week ago