Answered: If you purchase $24,000 in U.S.…

If you purchase $24,000 in U.S. Treasury Bills with a discount rate of 4.3% for a period of 26 weeks, what is the effective interest rate (as a %)? Round to the nearest hundredth percent.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 21P

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If you purchase $24,000 in U.S. Treasury Bills with a discount rate of 4.3% for a period of 26 weeks, what is the effective interest rate (as a %)? Round to the nearest hundredth percent.

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