Assume that 3-month Treasury bills totaling $25 billion were sold in $10,000 denominations at a discount rate of 5.600%. In addition, the Treasury Department sold 6-month bills totaling $23 billion at a discount rate of 5.545%. a. What is the discount amount for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.) Discount amount for 3-month bills b. What is the discount amount for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.) Discount amount for 6-month bills c. What is the effective rate for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.) Effective rate for 3-month bills Effective rate for 6-month bills **** d. What is the effective rate for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.) % %
Assume that 3-month Treasury bills totaling $25 billion were sold in $10,000 denominations at a discount rate of 5.600%. In addition, the Treasury Department sold 6-month bills totaling $23 billion at a discount rate of 5.545%. a. What is the discount amount for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.) Discount amount for 3-month bills b. What is the discount amount for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.) Discount amount for 6-month bills c. What is the effective rate for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.) Effective rate for 3-month bills Effective rate for 6-month bills **** d. What is the effective rate for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.) % %
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Transcribed Image Text:Assume that 3-month Treasury bills totaling $25 billion were sold in $10,000 denominations at a discount rate of
5.600%. In addition, the Treasury Department sold 6-month bills totaling $23 billion at a discount rate of 5.545%.
a. What is the discount amount for 3-month bills? (Do not round intermediate calculations. Round your final
answer to the nearest cent.)
Discount amount for 3-month bills
b. What is the discount amount for 6-month bills? (Do not round intermediate calculations. Round your final
answer to the nearest cent.)
Discount amount for 6-month bills
c. What is the effective rate for 3-month bills? (Do not round intermediate calculations. Round your final answer to
the nearest hundredth percent.)
Effective rate for 3-month bills
Effective rate for 6-month bills
****
d. What is the effective rate for 6-month bills? (Do not round intermediate calculations. Round your final answer to
the nearest hundredth percent.)
%
%
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