An investor purchased a 91-day, $10,000.00 T-bill on its issue date for $9915 98. After holding it for 66 days, she sold the T-bill for a yield of 3.01% (a) What was the original yield of the T-bill? (b) For what price was the T-bill sold? (c) What rate of return (per annum) did the investor realize while holding this T-bill? (a) The original yield of the T-bill was% (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.) (b) The T-bill sold for $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The investor realized a rate of return of% (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed)
An investor purchased a 91-day, $10,000.00 T-bill on its issue date for $9915 98. After holding it for 66 days, she sold the T-bill for a yield of 3.01% (a) What was the original yield of the T-bill? (b) For what price was the T-bill sold? (c) What rate of return (per annum) did the investor realize while holding this T-bill? (a) The original yield of the T-bill was% (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.) (b) The T-bill sold for $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The investor realized a rate of return of% (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed)
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:An investor purchased a 91-day, $10,000.00 T-bill on its issue date for $9915.98. After holding it for 66 days, she sold the T-bill for a yield of 3.01%
(a) What was the original yield of the T-bill?
(b) For what price was the T-bill sold?
(c) What rate of return (per annum) did the investor realize while holding this T-bill?
GOOOD
(a) The original yield of the T-bill was%
(Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed)
(b) The T-bill sold for $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
(c) The investor realized a rate of return of%
(Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed)
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