Question
Q: An investor purchases a six-month (182-day) T-bill with a $10,000 face value for $9,745. i) What is the published T-bill rate and its coupon
Q: An investor purchases a six-month (182-day) T-bill with a $10,000 face value for $9,745.
i) What is the published T-bill rate and its coupon yield equivalent?
(ii) Suppose the investor holds the T-bill for 80 days but then offers to sell it to you. If the expected annualized yield of the T-bill is 6.8%, what would be the price of the T-bill?
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
