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Assume the Treasury Bill in the question above was bought by Investor 1. Investor 1 then sold the T-Bill 30 days after issuance for $196,000
- Assume the Treasury Bill in the question above was bought by Investor 1. Investor 1 then sold the T-Bill 30 days after issuance for $196,000 to Investor 2. Assume the answer to question 8 was $197,000.
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- What is the effective interest rate paid by the initial issuer of the T-bill (ie the borrower)?
- What is the dollar amount of interest earned or lost for the two investors, Investor 1 and Investor 2?
- What is the effective annual percentage rate of return earned or lost by Investor 1?
- What is the effective annual percentage rate of return earned or lost by Investor 2?
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Skills For Accounting And Auditing Research
Authors: Shelby Collins
2nd Edition
1618530747, 9781618530745
