Question
If an investor buys a T-bill with 180 days till maturity and $250,000 par value for $242,000. He plans to sell it after 60 days,
If an investor buys a T-bill with 180 days till maturity and $250,000 par value for $242,000. He plans to sell it after 60 days, and forecasts a selling price of $247,000 at that time.
A) What is the non-compounded annualized yield based on this expectation?
B) What is the compounded annualized yield based on this expectation?
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New Issues In Financial Institutions Management
Authors: F Fiordelisi, P Molyneux, D Previati
2010th Edition
0230278108, 978-0230278103
