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Luke Purchases a $50 000 Face Value One-Year Treasury Bill

Question 66

Multiple Choice

Luke purchases a $50 000 face value one-year Treasury bill for $46 296.30,and the next day investors decide they will only buy one-year Treasury bills if they receive an interest rate of 4%.If Luke decides to sell his Treasury bill to another investor the day after he purchased it,he will


A) receive a capital gain of $1780.62.
B) receive a capital gain of $2000.00.
C) suffer a capital loss of $1923.08.
D) suffer a capital loss of $1851.85.

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