11) An investor bought a $500,000 Face Government of Quebec T-Bill 250 days before maturity with an associated interest rate of 4% p.a. She then sold the T-bill 104 days later and received $495,049.41. Determine: a. The amount she paid for the T-bill. b. The interest rate associated with the sale of T-bill at $495,049.41. c. The rate of return the investor realized over the 104 days.

11) An investor bought a $500,000 Face Government of Quebec T-Bill 250 days before maturity with an associated interest rate of 4% p.a. She then sold the T-bill 104 days later and received $495,049.41. Determine: a. The amount she paid for the T-bill. b. The interest rate associated with the sale of T-bill at $495,049.41. c. The rate of return the investor realized over the 104 days.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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