A 6-month $13,500 treasury bill with a simple annual discount rate of 0.43% was sold in 2016. Assume 365 days in a year (a) Find the price of the treasury bill (T-bill). (b) Find the actual interest rate paid by the Treasury. (a) The price of the T-bill was $ (Round to the nearest cent as needed.) (b) The actual interest rate paid by the Treasury is% (Type an integer or decimal rounded to four decimal places as needed.)
A 6-month $13,500 treasury bill with a simple annual discount rate of 0.43% was sold in 2016. Assume 365 days in a year (a) Find the price of the treasury bill (T-bill). (b) Find the actual interest rate paid by the Treasury. (a) The price of the T-bill was $ (Round to the nearest cent as needed.) (b) The actual interest rate paid by the Treasury is% (Type an integer or decimal rounded to four decimal places as needed.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 6-month $13,500 treasury bill with a simple annual discount rate of 0.43% was sold in 2016. Assume 365 days in a year.
(a) Find the price of the treasury bill (T-bill).
(b) Find the actual interest rate paid by the Treasury
(a) The price of the T-bill was $
(Round to the nearest cent as needed.)
(b) The actual interest rate paid by the Treasury is%.
(Type an integer or decimal rounded to four decimal places as needed.)
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