A $100,000, 156-day Government of Canada Treasury bill was purchased on its date of issue to yield 1.9%. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What price did the investor pay? Purchase price $4 b. Calculate the market value of the T-bill 82 days later if the rate of return then required by the market has: Market value (1) Risen to 2.2% (11) Remained at 1.9% (ii1)Fallen to 1.6% c. Calculate the rate of return actually realized by the investor if the T-bill is sold at each of the three prices calculated in Part (b). (1) r= (11) r = (111)r
A $100,000, 156-day Government of Canada Treasury bill was purchased on its date of issue to yield 1.9%. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What price did the investor pay? Purchase price $4 b. Calculate the market value of the T-bill 82 days later if the rate of return then required by the market has: Market value (1) Risen to 2.2% (11) Remained at 1.9% (ii1)Fallen to 1.6% c. Calculate the rate of return actually realized by the investor if the T-bill is sold at each of the three prices calculated in Part (b). (1) r= (11) r = (111)r
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 4P
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![A $100,000, 156-day Government of Canada Treasury bill was purchased on its
date of issue to yield 1.9%. (Do not round intermediate calculations and round
your final answers to 2 decimal places.)
a. What price did the investor pay?
Purchase price
$4
b. Calculate the market value of the T-bill 82 days later if the rate of return then
required by the market has:
Market value
(1) Risen to 2.2%
(ii) Remained at 1.9%
(iii)Fallen to 1.6%
c. Calculate the rate of return actually realized by the investor if the T-bill is sold
at each of the three prices calculated in Part (b).
(1) r =
(11) r
(iii)r](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ea8d948-607c-4464-a798-0ad002e774f2%2Fddcee11b-47c6-43b6-b477-bc82b65313c9%2Fwxfyvf2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A $100,000, 156-day Government of Canada Treasury bill was purchased on its
date of issue to yield 1.9%. (Do not round intermediate calculations and round
your final answers to 2 decimal places.)
a. What price did the investor pay?
Purchase price
$4
b. Calculate the market value of the T-bill 82 days later if the rate of return then
required by the market has:
Market value
(1) Risen to 2.2%
(ii) Remained at 1.9%
(iii)Fallen to 1.6%
c. Calculate the rate of return actually realized by the investor if the T-bill is sold
at each of the three prices calculated in Part (b).
(1) r =
(11) r
(iii)r
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