investor purchased a 91 day, $100,000.00 t-bill on its issue date fir $99, 441.89, after holding it for 16 days, she sold the t bill for a yeild of 2.21% what is the original yeild of the t bill? what was the t bill sold for? the investor realized the rate of return was?

investor purchased a 91 day, $100,000.00 t-bill on its issue date fir $99, 441.89, after holding it for 16 days, she sold the t bill for a yeild of 2.21% what is the original yeild of the t bill? what was the t bill sold for? the investor realized the rate of return was?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 2P

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Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

a investor purchased a 91 day, $100,000.00 t-bill on its issue date fir $99, 441.89, after holding it for 16 days, she sold the t bill for a yeild of 2.21% what is the original yeild of the t bill? what was the t bill sold for? the investor realized the rate of return was?

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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