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Consider a US Treasury Bill with a face value of $10,000. a. What is the price that an investor has to pay for the bill,
Consider a US Treasury Bill with a face value of $10,000.
a. What is the price that an investor has to pay for the bill, if the time to maturity is 1
year and the bill is quoted at an (ask) discount rate of 6%?
b. What is the (annualized) return on investment (yield) that the investor will earn if
the bill is held until maturity?
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
2nd Edition
0324015658, 9780324015652
