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both please J.3 An investor purchases a US Treasury bill with a value of $100,000 at maturity, remaining time to maturity of 95 days, and
both please
J.3 An investor purchases a US Treasury bill with a value of $100,000 at maturity, remaining time to maturity of 95 days, and a quoted rate of 4.5%. After 35 days, the quoted rate is 3.6%, and the investor sells the T-bill. Calculate the annual effective rate of interest earned by the investor. (a) 3.67% (b) 4.70% (c) 6.17% (d) 6.26% (e) 6.38% J.4 An investor purchases a Canadian Treasury bill with a value of $100,000 at maturity, remaining time to maturity of 73 days, and a price of $99,304.87. Let J be the annual effective yield of the T-bill and let O be the quoted rate of the T-bill. Find the difference - Q. (a) 0.02% (b) 0.05% (c) 0.07% (d) 0.10% (e) 0.12% J.3 An investor purchases a US Treasury bill with a value of $100,000 at maturity, remaining time to maturity of 95 days, and a quoted rate of 4.5%. After 35 days, the quoted rate is 3.6%, and the investor sells the T-bill. Calculate the annual effective rate of interest earned by the investor. (a) 3.67% (b) 4.70% (c) 6.17% (d) 6.26% (e) 6.38% J.4 An investor purchases a Canadian Treasury bill with a value of $100,000 at maturity, remaining time to maturity of 73 days, and a price of $99,304.87. Let J be the annual effective yield of the T-bill and let O be the quoted rate of the T-bill. Find the difference - Q. (a) 0.02% (b) 0.05% (c) 0.07% (d) 0.10% (e) 0.12% Step by Step Solution
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