Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An investor purchased a 91-day, $100,000.00 T-bill on its issue date for $99,294.48. After holding it for 74 days. she sold the T-bill for a
An investor purchased a 91-day, $100,000.00 T-bill on its issue date for $99,294.48. After holding it for 74 days. she sold the T-bill for a yield of 2.58%. (a) What was the original yield of the Tbill? (b) For what price was the Tbill 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 |:|%. (Round the final answer to two decimal places as needed. Round a|| intermediate values to six decimal places as needed.) (b) The Tbill sold for $D. (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 D%. (Round the final answer to two decimal places as needed. Round a|| 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