Off to yield 1.91%. (a) What is the price of each $10,000.00 T-bill on April 1? (b) What is the yield rate on July 19 if the market price is $9,813.45? (c) Calculate the market value of each $10,000.00 T-bill on September 24 if the rate of return on that date is 2 75% (d) What is the

Off to yield 1.91%. (a) What is the price of each $10,000.00 T-bill on April 1? (b) What is the yield rate on July 19 if the market price is $9,813.45? (c) Calculate the market value of each $10,000.00 T-bill on September 24 if the rate of return on that date is 2 75% (d) What is the

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

Problem 1PS

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Question

On April 1, $10,000.00 364-day treasury bills were auctioned off to yield 1.91%.
(a) What is the price of each $10,000.00 T-bill on April 1?
(b) What is the yield rate on July 19 if the market price is $9,813.45?
(c) Calculate the market value of each $10,000.00 T-bill on September 24 if the rate of return on that date is 2.75%.
(d) What is the rate of return realized if a $10,000.00 T-bill purchased on April 1 is sold on December 16 at a market rate of 2.796%1
(a) The price is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

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