Javier owns a $21,000.00 T - bill that matures on 2014-06-20. His target price is $20,789.22, the (annual) simple interest rate is 1.320% and the daycount convention is ACT / 360. What is the first date on which he can sell the T - bill for more than the target price? How much does he receive?
Javier owns a $21,000.00 T - bill that matures on 2014-06-20. His target price is $20,789.22, the (annual) simple interest rate is 1.320% and the daycount convention is ACT / 360. What is the first date on which he can sell the T - bill for more than the target price? How much does he receive?
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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
Transcribed Image Text:Javier owns a $21,000.00 T - bill that matures on 2014-06-20. His target price is $20,789.22, the (annual) simple interest rate is 1.320% and the daycount
convention is ACT / 360. What is the first date on which he can sell the T - bill for more than the target price? How much does he receive?
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