An investor purchased a 182-day, $10,000.00 T - bill on its issue date for $ 9910.29. After holding it for 136 days, she sold the T - bill for a yield of 1.67%. (a) What was the original yield of the T - bill? (b) For what price was the T - bill sold? (c) What rate of return (per annum) did the investor realize while holding this T - bill?

An investor purchased a 182-day, $10,000.00 T - bill on its issue date for $ 9910.29. After holding it for 136 days, she sold the T - bill for a yield of 1.67%. (a) What was the original yield of the T - bill? (b) For what price was the T - bill sold? (c) What rate of return (per annum) did the investor realize while holding this T - bill?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22P

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