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4 Using the information in the table above calculate the annual percentage rate and the effective annual rate for the three-month Treasury bill. Then convert these nominal returns to real returns. (Use cells A3 to B9 from the given information to complete this question.) 5 16 Three-Month Treasury Bill 17 Annual Percentage Rate (APR) Nominal Return Real Return

4 Using the information in the table above calculate the annual percentage rate and the effective annual rate for the three-month Treasury bill. Then convert these nominal returns to real returns. (Use cells A3 to B9 from the given information to complete this question.) 5 16 Three-Month Treasury Bill 17 Annual Percentage Rate (APR) Nominal Return Real Return

Essentials Of Investments
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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2 3 4 5 6 7 8 Price Face Value Maturity (in months) Three-Month Treasury Bill 9 10 11 Required: 14 A Months per Year Inflation Rate, Annual 15 16 17 18 Other Information 4 $9,925.00 $10,000.00 Three-Month Treasury Bill Annual Percentage Rate (APR) Effective Annual Rate (EAR) 3 12 3.50% Using the information in the table above calculate the annual percentage rate and the effective annual rate 12 for the three-month Treasury bill. Then convert these nominal returns to real returns. 13 (Use cells A3 to B9 from the given information to complete this question.) C Nominal Return D Real Return E F
Transcribed Image Text:2 3 4 5 6 7 8 Price Face Value Maturity (in months) Three-Month Treasury Bill 9 10 11 Required: 14 A Months per Year Inflation Rate, Annual 15 16 17 18 Other Information 4 $9,925.00 $10,000.00 Three-Month Treasury Bill Annual Percentage Rate (APR) Effective Annual Rate (EAR) 3 12 3.50% Using the information in the table above calculate the annual percentage rate and the effective annual rate 12 for the three-month Treasury bill. Then convert these nominal returns to real returns. 13 (Use cells A3 to B9 from the given information to complete this question.) C Nominal Return D Real Return E F
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