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has $45,186.38 and he wants to buy a 5,000.00 T-bill maturing on March 23, 21. The annual discount rate is 9.000%.

has $45,186.38 and he wants to buy a 5,000.00 T-bill maturing on March 23, 21. The annual discount rate is 9.000%.

Essentials Of Investments
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
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Kai has $45,186.38 and he wants to buy a $46,000.00 T-bill maturing on March 23, 2021. The annual discount rate is 9.000%. What is the last possible day on which he can still purchase the T-bill? (Use the ACT/ 360 daycount convention.) (Think carefully about the rounding issue. How much does the T-bill actually cost on the day he buys it? Hint: it's a little less than $45,186.38 but if he waits one more day he wont be able to afford it.)
Transcribed Image Text:Kai has $45,186.38 and he wants to buy a $46,000.00 T-bill maturing on March 23, 2021. The annual discount rate is 9.000%. What is the last possible day on which he can still purchase the T-bill? (Use the ACT/ 360 daycount convention.) (Think carefully about the rounding issue. How much does the T-bill actually cost on the day he buys it? Hint: it's a little less than $45,186.38 but if he waits one more day he wont be able to afford it.)
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