Assume that interest rate on a 182-day, $1 million face value T-Bill is currently selling at a discount rate of 3.25%. What will be the price of the T-Bill? What is the return on the T-Bill if the investor purchases at the above price and holds until maturity     8.91%     0.45%     6.46%     5.78%     4.68%     3.44%     7.88%     1.67%   1

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
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Assume that interest rate on a 182-day, $1 million face value T-Bill is currently selling at a

discount rate of 3.25%. What will be the price of the T-Bill? What is the return on the T-Bill if the investor purchases at the above price and holds until maturity

   

8.91%

   

0.45%

   

6.46%

   

5.78%

   

4.68%

   

3.44%

   

7.88%

   

1.67%

 

1

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