Question
An investor purchased a 91 -day, $25,000.00 T-bill on its issue date for $24,896.29 After holding it for 62 days, she sold the T-bill for
An investor purchased a 91 -day, $25,000.00 T-bill on its issue date for $24,896.29 After holding it for 62 days, she sold the T-bill for a yield of 1.55% (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 nothing%. (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 $ nothing. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The investor realized a rate of return of nothing%. (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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started