Answered: n investment dealer paid $24 756.25 to…

n investment dealer paid $24 756.25 to acquire a $25 OOO, 182-day Government of Canada treasury bill at the weekly auction. What was the annual rate of return on this T-bill?

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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Question

An investment dealer paid $24 756.25 to

acquire a $25 OOO, 182-day Government of

Canada treasury bill at the weekly auction. What

was the annual rate of return on this T-bill?

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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