A $500,000 268-day Treasury Bill was issued to Buyer #1 at 4.1 % simple interest. 168 days before the T-Bill reached maturity it was sold by Buyer #1 at a rate that would provide Buyer #2 with a return of 3.4% if Buyer #2 held the T-Bill to maturity. What annual simple rate did Buyer #1 actually realize over the period that Buyer #1 held the T-Bill?
A) 4.10%
B) 3.09%
C) 5.19%
D) 4.47%
E) 6.77%

Question

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The Answer of A $500,000 268-day Treasury Bill was issued to Buyer #1 at 4.1 % simple interest. 168 days before the T-Bill reached maturity it was sold by Buyer #1 at a rate that would provide Buyer #2 with a return of 3.4% if Buyer #2 held the T-Bill to maturity. What annual simple rate did Buyer #1 actually realize over the period that Buyer #1 held the T-Bill?
A) 4.10%
B) 3.09%
C) 5.19%
D) 4.47%
E) 6.77%

A $500,000 268-Day Treasury Bill Was Issued to Buyer #1