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Investing in Bank of Canada Treasury Bills Hameed learned that investing his money in T-bills would yield returns that are usually higher than that of
Investing in Bank of Canada Treasury Bills Hameed learned that investing his money in T-bills would yield returns that are usually higher than that of a typical savings account but lower than those of other risky money market instruments like stocks and mutual funds. In addition to being very safe investments (as they are guaranteed by the government), T-bills are also short-term investments. These features made the investment option very attractive for Hameed as he needed the money in a few months for a business opportunity. On May 10, 2019 Hameed purchased a 91-day Bank of Canada T-bill that had a face value of $50,000. However, he sold the T-bill in 35 days as he urgently required the money for his business. Answer the following questions using the information on the yield (return) of the T-bill at different times during the year provided in the graph. a. How much did Hameed pay for the T-bill? b. How much did he receive from the sale of the T-bill? c. What rate of return did he finally earn on the T-bill
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