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Assume that 3-month Treasury bills totaling $20 billion were sold in $10,000 denominations at a discount rate of 4.850%. In addition, the Treasury Department sold
Assume that 3-month Treasury bills totaling $20 billion were sold in $10,000 denominations at a discount rate of 4.850%. In addition, the Treasury Department sold 6-month bills totaling $18 billion at a discount rate of 4.795%. a. What is the discount amount for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.) b. What is the discount amount for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.) c. What is the effective rate for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.) d. What is the effective rate for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.)
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