Question
Assume that 3-month Treasury bills totaling $19 billion were sold in $10,000 denominations at a discount rate of 4.700%. In addition, the Treasury Department sold
Assume that 3-month Treasury bills totaling $19 billion were sold in $10,000 denominations at a discount rate of 4.700%. In addition, the Treasury Department sold 6-month bills totaling $17 billion at a discount rate of 4.645%. a. What is the discount amount for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.) Discount amount for 3-month bills $ 1,175.00 b. What is the discount amount for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.) Discount amount for 6-month bills $ c. What is the effective rate for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.) Effective rate for 3-month bills % d. What is the effective rate for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.) Effective rate for 6-month bills %
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