eBook

Problem 25-14

What is the effective, compound rate of interest you earn if you enter into a repurchase agreement in which you buy a Treasury bill for $76,722 and agree to sell it after two months (60 days) for $77,270? Assume 365 days per year. Round your answer to one decimal place.

%

What is the compound rate of interest you pay if you sell a Treasury bill for $76,722 and repurchase it after 60 days for $77,270? Assume 365 days per year. Round your answer to one decimal place.