A 3-month $26,000 treasury bill with a simple annual discount rate of 0.24% was sold in 2016. Assur days in a year. (a) Find the price of the treasury bill (T-bill). (b) Find the actual interest rate paid by the Treasury.
A 3-month $26,000 treasury bill with a simple annual discount rate of 0.24% was sold in 2016. Assur days in a year. (a) Find the price of the treasury bill (T-bill). (b) Find the actual interest rate paid by the Treasury.
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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Transcribed Image Text:A 3-month $26,000 treasury bill with a simple annual discount rate of 0.24% was sold in 2016. Assume 365
days in a year.
(a) Find the price of the treasury bill (T-bill).
(b) Find the actual interest rate paid by the Treasury.
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