Suppose you buy a 30-day T-bill with a face value of $1,000 at a price of $990. Your investment return yield (IRY)would be

Question

Quizplus · Accepted Answer

The investment return yield (IRY) can be calculated using the formula: IRY = [(Face Value - Purchase Price) / Purchase Price] * (365 / days until maturity). Plugging in the given values: IRY = [($1,000 - $990) / $990] * (365 / 30) = $10 / $990 * 12.17 = 0.1217 or 12.17%.

Suppose You Buy a 30-Day T-Bill with a Face Value