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Homework answers / question archive / Suppose you purchase a T-bill maturing in 50 days which has a par value of $10,000 and a bank discount rate of 9

Suppose you purchase a T-bill maturing in 50 days which has a par value of $10,000 and a bank discount rate of 9

Finance

Suppose you purchase a T-bill maturing in 50 days which has a par value of $10,000 and a bank discount rate of 9.50%.

(if you hold this T-bill until its maturity)

a)What are the price and the bond equivalent yield of this T-bill?

b)what would be the annual percentage rate of return

c) the effective annual rate of return from this investment

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