Question $16$

A $6$ month Treasury bill $($TBill $1)$ is issued onto the market with a face value of $100.$

The bill is bought on the primary market at $95,$ the following day a new $6$ month

Treasury bill $($TBill $2)$ is bought on the primary market at $96.$ The approximate

annualised return on the $($TBill $1)$ on issue was:

A$),10\mathrm{.}52\%$ and its price will rise on the secondary market.

B$),5\mathrm{.}26\%$ and its price will rise on the secondary market.

C$)10\mathrm{.}52\%$ and its price will fall on the secondary market.

D$)5\mathrm{.}26\%$ and its price will fall on the secondary market.

E$)$ None of the above