Calculate the percentage return on a 1-year Treasury bill with a face value of $10,000if you pay $9,138.01 to purchase it and receive its full face value at maturity. The percentage return is ______%. (Round to two decimal places.)

Calculate the percentage return on a 1-year Treasury bill with a face value of $10,000if you pay $9,138.01 to purchase it and receive its full face value at maturity. The percentage return is ______%. (Round to two decimal places.)

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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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

Calculate the percentage return on a 1-year Treasury bill with a face value of $10,000if you pay $9,138.01
to purchase it and receive its full face value at maturity.

The percentage return is ______%. (Round to two decimal places.)

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