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You decide to invest money in a T-bill. A T-bill is a bond that is sold at a discount face value. For example, suppose you

You decide to invest money in a T-bill. A T-bill is a bond that is sold at a discount face value. For example, suppose you buy a 13 week T-bill with a face value of $10,000 for $9,800. What annual simple interest rate have you earned?

This is a homework question for my college math class and I feel so confused since I don't know what formula to use. Could you help me find out the formula?

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Derivatives Markets

Derivatives Markets

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978-9332536746, 9789332536746

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