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74 Assume a $1,000 Treasury Bill Is Quoted to Pay

Question 63

Essay

74 Assume a $1,000 treasury bill is quoted to pay 10 percent 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 rate of return?

Correct Answer:

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a)10% interest = 2.5% interest for 3 mon...

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