A $100,000, 168-day Government of Canada Treasury bill was purchased on its date of issue to yield 3.7%.
a) What price did the investor pay?
b) Calculate the market value of the T-bill 85 days later if the annual rate of return then required by the market has:
(i) risen to 4%. (ii) remained at 3.7%. (iii) fallen to 3.4%.
c) Calculate the rate of return actually realized by the investor if the T-bill is sold at each of the three prices calculated in part (b).

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The Answer of A $100,000, 168-day Government of Canada Treasury bill was purchased on its date of issue to yield 3.7%.
a) What price did the investor pay?
b) Calculate the market value of the T-bill 85 days later if the annual rate of return then required by the market has:
(i) risen to 4%. (ii) remained at 3.7%. (iii) fallen to 3.4%.
c) Calculate the rate of return actually realized by the investor if the T-bill is sold at each of the three prices calculated in part (b).

A $100,000, 168-Day Government of Canada Treasury Bill Was Purchased