Ay 1. An investor bought a $500,000 face Government of Ontario Treasury Bill 355 days before maturity at an interest rate of 3.9% p.a. She sold the T-bill 219 days later at a rate of 3.45% p.a. Determine: a. The amount she paid for the T-bill. b. The amount she sold the T-bill for c. The rate of return (R) she realized on her investment over the 219 days.
Ay 1. An investor bought a $500,000 face Government of Ontario Treasury Bill 355 days before maturity at an interest rate of 3.9% p.a. She sold the T-bill 219 days later at a rate of 3.45% p.a. Determine: a. The amount she paid for the T-bill. b. The amount she sold the T-bill for c. The rate of return (R) she realized on her investment over the 219 days.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ay 1.
An investor bought a $500,000 face Government of Ontario Treasury Bill 355 days before maturity at an interest rate of 3.9% p.a. She sold the T-bill 219 days later at a rate of 3.45% p.a.
Determine:
a. The amount she paid for the T-bill.
b. The amount she sold the T-bill for
c. The rate of return (R) she realized on her investment over the 219 days.
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