3 Miguel would like you to calculate whether he has realized a capital gain or loss on a T-bill he recently sold. He bought the 91-day T-bill for $987,320 with an effective annual yield of 5.25%. Sixty days later, the effective interest rate fell to 4.25% and he sold the T-bill for $996,470. What is Miguel's capital gain on this transaction? a) $ 810 b) $1,150 c) $2,370 d) $3,530
3 Miguel would like you to calculate whether he has realized a capital gain or loss on a T-bill he recently sold. He bought the 91-day T-bill for $987,320 with an effective annual yield of 5.25%. Sixty days later, the effective interest rate fell to 4.25% and he sold the T-bill for $996,470. What is Miguel's capital gain on this transaction? a) $ 810 b) $1,150 c) $2,370 d) $3,530
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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D3
Miguel would like you to calculate whether he has realized a capital gain or loss on a T-bill he recently sold. He bought the 91-day T-bill for $987,320 with an effective annual yield of 5.25%. Sixty days later, the effective interest rate fell to 4.25% and he sold the T-bill for $996,470. What is Miguel's capital gain on this transaction?
a) $ 810
b) $1,150
c) $2,370
d) $3,530
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