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    Exam 9: Compound Interest: Further Topics and Applications
  5. Question
    A T-Bill with 125 Days Remaining to Maturity Is Discounted
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A T-Bill with 125 Days Remaining to Maturity Is Discounted

Question 2

Question 2

Short Answer

A T-bill with 125 days remaining to maturity is discounted to yield 4.6% pa simple interest. What is the effective annualized rate of return on the T-bill?

Correct Answer:

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