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Lydia purchased a $100,000 150-day T- bill when the prevailing yield on T - bills was 4.5%. She sold the T - bill 60 days. later when the prevailing yield was 4.2% . What interest rate did Lydia earn during - the 60 day period? (Round your answer to three decimal places.)

Lydia purchased a $100,000 150-day T- bill when the prevailing yield on T - bills was 4.5%. She sold the T - bill 60 days. later when the prevailing yield was 4.2% . What interest rate did Lydia earn during - the 60 day period? (Round your answer to three decimal places.)

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Lydia purchased a $100,000 150-day T- bill when the prevailing yield on T - bills was 4.5%. She sold the T - bill 60 days. later when the prevailing yield was 4.2% . What interest rate did Lydia earn during - the 60 day period? (Round your answer to three decimal places.)
Transcribed Image Text:Lydia purchased a $100,000 150-day T- bill when the prevailing yield on T - bills was 4.5%. She sold the T - bill 60 days. later when the prevailing yield was 4.2% . What interest rate did Lydia earn during - the 60 day period? (Round your answer to three decimal places.)
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