Short Answer
Assume a $1,000 Treasury bill is quoted to pay 10% and matures in 3 months.
a) How much interest would an investor receive?
b) What will be the price of the Treasury bill?
c) What will be the true rate of return?
Correct Answer:
Verified
a) 2.5%
b) $975
c) 10.25%
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Correct Answer:
Verified
b) $975
c) 10.25%
Expl...
View Answer
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