A $100,000, 156-day Government of Canada Treasury bill was purchased on its date of issue to yield 1.9%. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What price did the investor pay? Purchase price $4 b. Calculate the market value of the T-bill 82 days later if the rate of return then required by the market has: Market value (1) Risen to 2.2% (11) Remained at 1.9% (ii1)Fallen to 1.6% 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). (1) r= (11) r = (111)r

A $100,000, 156-day Government of Canada Treasury bill was purchased on its date of issue to yield 1.9%. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What price did the investor pay? Purchase price $4 b. Calculate the market value of the T-bill 82 days later if the rate of return then required by the market has: Market value (1) Risen to 2.2% (11) Remained at 1.9% (ii1)Fallen to 1.6% 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). (1) r= (11) r = (111)r

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 4P

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A $100,000, 156-day Government of Canada Treasury bill was purchased on its date of issue to yield 1.9%. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What price did the investor pay? Purchase price $4 b. Calculate the market value of the T-bill 82 days later if the rate of return then required by the market has: Market value (i) Risen to 2.2% (ii) Remained at 1.9% (iii)Fallen to 1.6% 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). (i) r = (ii) r (iii)r
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