Assume investors require a 5 percent annualized return on a six-month T-bill with a par value of $10,000. The price investors would be willing to pay is $____.

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To find the price investors would be willing to pay for a six-month T-bill, you can use the formula for the present value of a future sum: $ \text{Present Value} = \frac{\text{Future Value}}{(1 + r)^n} $, where $r$ is the annualized return rate and $n$ is the time in years. For a 5 percent annualized return over six months (0.5 years), the calculation is $ \frac{10,000}{(1 + 0.05)^{0.5}} \approx 9,756 $.

Assume Investors Require a 5 Percent Annualized Return on a Six-Month