A 1 year government treasury bill will pay you $1,000 when it matures 1 year from now (no interest/coupon payments). If the going interest rate on a 1 year T-Bill is 0.75% what would you be willing to pay for the investment today? Question 2Answer a. $992.56 b. $571.43 c. $999.93 d. $1,333.33

A 1 year government treasury bill will pay you $1,000 when it matures 1 year from now (no interest/coupon payments). If the going interest rate on a 1 year T-Bill is 0.75% what would you be willing to pay for the investment today? Question 2Answer a. $992.56 b. $571.43 c. $999.93 d. $1,333.33

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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A 1 year government treasury bill will pay you $1,000 when it matures 1 year from now (no interest/coupon payments). If the going interest rate on a 1 year T- Bill is 0.75% what would you be
willing to pay for the investment today? Question 2Answer a. $992.56 b. $571.43 c. $999.93 d. $1,333.33

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