A 91-day Treasury bill issued three weeks ago is quoted at 4.23. How much would you pay for a bill with a face value of $1000? Using dollar figures rounded to the nearest penny, what is the continuously compounded return (on an actual/365) basis?

A 91-day Treasury bill issued three weeks ago is quoted at 4.23. How much would you pay for a bill with a face value of $1000? Using dollar figures rounded to the nearest penny, what is the continuously compounded return (on an actual/365) basis?

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 91-day Treasury bill issued three weeks ago is quoted at 4.23.

How much would you pay for a bill with a face value of $1000?
Using dollar figures rounded to the nearest penny, what is the continuously compounded return (on an actual/365) basis?

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