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If a 6-month T-Bill with a face value of $100 is purchased at a 8% annual discount, the buyer will receive $100 at maturity. The rate of return (annualized) of this T-Bill is     7.5%     15%     11.1%     13.5%     8.33%     14.6%     6.2%     5%

If a 6-month T-Bill with a face value of $100 is purchased at a 8% annual discount, the buyer will receive $100 at maturity. The rate of return (annualized) of this T-Bill is     7.5%     15%     11.1%     13.5%     8.33%     14.6%     6.2%     5%

Essentials Of Investments
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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If a 6-month T-Bill with a face value of $100 is purchased at a 8% annual discount, the

buyer will receive $100 at maturity. The rate of return (annualized) of this T-Bill is

   

7.5%
   

15%
   

11.1%
   

13.5%
   

8.33%
   

14.6%
   

6.2%
   

5%
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