Question
Suppose you buy 91-day T-bills, 182-day T-bills, and 15-year Treasury bond with face value GHS100 at the following prices: Price for 91-day bill = GHS94.75
Suppose you buy 91-day T-bills, 182-day T-bills, and 15-year Treasury bond with face value GHS100 at the following prices:
Price for 91-day bill = GHS94.75
Price for 182-day bill = GHS89.00
Price for 15-year bond = GHS25
Required:
(a) Compute the risk-free return for the given investment horizons
(b) Compute the EAR for each investment
(c) Compute the APR for each period
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Gapenskis Cases In Healthcare Finance
Authors: George H. Pink
6th Edition
1567939651, 978-1567939651
