You bought a 90-day bank bill 30 days ago. The face value of the bill is $100,000. The yieldon this bill was 5% per annum. Today, when you sell the bank bill, the yield has increased to6%. What is your return holding the bank bill?

T-bills are issued at discount to the face value of Bill and the discount on bill is the rate of…

You bought a 90-day bank bill 30 days ago. The face value of the bill is $100,000. The yie on this bill was 5% per annum. Today, when you sell the bank bill, the yield has increased 6%. What is your return holding the bank bill?

You bought a 90-day bank bill 30 days ago. The face value of the bill is $100,000. The yie on this bill was 5% per annum. Today, when you sell the bank bill, the yield has increased 6%. What is your return holding the bank bill?

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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You bought a 90-day bank bill 30 days ago. The face value of the bill is $100,000. The yield
on this bill was 5% per annum. Today, when you sell the bank bill, the yield has increased to
6%. What is your return holding the bank bill?

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