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Question 55 (1 point) You have the opportunity to purchase a Government of Canada financial security (a Treasury Bill or commonly known as a T-bill)

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Question 55 (1 point) You have the opportunity to purchase a Government of Canada financial security (a Treasury Bill or commonly known as a T-bill) which will pay its face value of $100,000 in 12 months time. Treasury Bills do not pay interest but instead are sold at a discount. The current market interest rate is 3%, the T-bill is being offered for sale at a price of $96,000. You will: a) purchase the T-bill because the purchase price is less than its present value and is therefore profitable. O b) not purchase the T-bill because the purchase price is less than its present value. c) purchase the T-bill because the purchase price is more than its present value and is therefore profitable. d) not purchase the T-bill because she could earn an additional $1090 by investing the $96,000 elsewhere

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