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Author Question: Meher purchased a $100 000.00, 182-day T-bill on April 4, 2012.a) If the annual rate of return is ... (Read 82 times)

shofmannx20

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Question 1

An investor purchased $250 000 in 91-day T-bills on the issue date for $248 157.56. After holding the T-bills for 37 days, she sold them for a yield of 3.25%.
a) What was the original yield of the T-bills?
b) For how much did the investor sell the T-bills?
c) What rate of return (per annum) did the investor realize while holding this T-bill?

Question 2

Meher purchased a $100 000.00, 182-day T-bill on April 4, 2012.
a) If the annual rate of return is 4.2%, calculate the purchase price.
b) Calculate the selling price of the bill if it is sold on June 20, 2012 to yield 3.19%.
c) Calculate the rate of interest realized.


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Marked as best answer by shofmannx20 on Jun 6, 2019

joanwhite

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shofmannx20

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Reply 2 on: Jun 6, 2019
:D TYSM


jordangronback

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Reply 3 on: Yesterday
Wow, this really help

 

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