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There are several ways in which interest rates can be quoted. Which of the following statements is not true? Possible Answers A A U.S. Treasury
There are several ways in which interest rates can be quoted. Which of the following statements is not true? Possible Answers A A U.S. Treasury bill is quoted using a simple discount rate d : Price = (Maturity value) (1360n(d)) For a U.S. T-bill: Quoted rate =Numberofdays360MaturityvalueoftheT-billDollaramountofinterest A Government of Canada Treasury bill is quoted using a simple interest rate i : Price =1+365n(i)Maturityvalue For a Government of Canada Treasury bill: Quoted rate =Numberofdays365CurrentpriceoftheT-billDollaramountofinterest The quoted rate on a T-bill is a more accurate representation of the growth rate than the compound interest rate that is given by: Price =( Maturity value )(1+i)n/365
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