Question
An investor purchased a 91-day, $5000.00 T-bill on its issue date for $4964.54. After holding it for 8 days, she sold the T-bill for a
An investor purchased a 91-day, $5000.00 T-bill on its issue date for $4964.54. After holding it for 8 days, she sold the T-bill for a yield of 2.22%.
(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___%
(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 cent as needed. Round all intermediate values to six decimal places as needed.)
(c) The investor realized a rate of return of___%
(Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
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