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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 9.50%.
(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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