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An investor purchased a Treasury bill for $975. The bill pays $1,000 at maturity in exactly one year. (a) Compute the holding period rate of
An investor purchased a Treasury bill for $975. The bill pays $1,000 at maturity in exactly one year. (a) Compute the holding period rate of return. (b) Does worldwide demand for T-bills increase, decrease, or remain unchanged during periods of economic, political or social instability? (c) Are T-bills more risky, equally risky, or less risky than equity investments?
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