On April 1, $25,000.00 364-day treasury bills were auctioned off to yield 2.86%.(a) What is the price of each $25,000.00 T-bill on April 1?(b) What is the yield rate on July 17 if the market price is $24,434.49?(c) Calculate the market value of each $25,000.00 T-bill on September 16 if the rate of return on that date is 3.695%.(d) What is the rate of return realized if a $25,000.00 T-bill purchased on April 1 is sold on November 14 at a marketrate of 3.606%?(a) The price is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places asneeded.)%.(b) The yield rate isRound the final answer to two decimal places as needed. Round all intermediate values to six decimal places asneeded.)(c) The market value is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places asneeded.)(d) The rate of return realized is%.(Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places asneeded

Formula to calculate price of the treasury bill: PV = FV/(1+i)n Please note that as per Bartleby…

Answered: On April 1, $25,000.00 364-day treasury…

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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