On April 1, $10,000.00 364-day treasury bills were auctioned off to yield 2.63%. (a) What is the price of each $10,000.00 T-bil on April 17 (b) What is the yield rate on August 21 if the market price is $9,772.94? (c) Calculate the market value of each $10,000.00 T-bill on October 14 f the rate of return on that date is 3.264%. (d) What is the rate of return realized if a $10,000.00 T-bill purchased on April 1 is sold on November 25 at a market rate of 3.61%?

On April 1, $10,000.00 364-day treasury bills were auctioned off to yield 2.63%. (a) What is the price of each $10,000.00 T-bil on April 17 (b) What is the yield rate on August 21 if the market price is $9,772.94? (c) Calculate the market value of each $10,000.00 T-bill on October 14 f the rate of return on that date is 3.264%. (d) What is the rate of return realized if a $10,000.00 T-bill purchased on April 1 is sold on November 25 at a market rate of 3.61%?

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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