Answered: 49. Treasury Bill A three-month $7600…

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49. Treasury Bill A three-month $7600 T-bill carries a discount of $80.75. What is the discount rate for this T-bill?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 17P

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

49. Treasury Bill A three-month $7600 T-bill carries a discount
of $80.75. What is the discount rate for this T-bill?

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