The Treasury Department auctioned $27 billion in 3-month bills in denominations of $10,000 at a discount rate of 5.400%.

What would be the effective rate of interest? (Use calendar year. Do not round intermediate calculations. Round your answer to the nearest hundredth percent.)

Rate____Time____ = interest_____

Simple discount note:

On May 12, Scott Rinse accepted an $5,500, 13%, 90-day note for a time extension of a bill for goods bought by Ron Prentice. On June 12, Scott discounted the note at Able Bank at 12%. (Use Days in a year table.)

What proceeds does Scott receive? (Do not round intermediate calculations. Round your final answer to the nearest cent.)

Cancellation of ordinary interest:

Principal:

Rate:

Time:________= interest____

Simple Interest Note:

Assume that 3-month Treasury bills totaling $29 billion were sold in $10,000 denominations at a discount rate of 6.100%. In addition, the Treasury Department sold 6-month bills totaling $27 billion at a discount rate of 6.045%.

a.	What is the discount amount for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.)

Discount amount for 3-month bills

$

b.	What is the discount amount for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.)

Discount amount for 6-month bills

$

c.	What is the effective rate for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.)

Effective rate for 3-month bills

%

d.	What is the effective rate for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.)

Effective rate for 6-month bills

%