rate would be publishe on this Treasury bill? What is the annual interest rate of this bill that would make it comparable to rates quoted on bonds? Now suppose that after 10 days of T-bills issued, the discount rate increased to 11.5 percent. At what price will the Treasury bill be selling when it has 50 days remaining to maturity?
rate would be publishe on this Treasury bill? What is the annual interest rate of this bill that would make it comparable to rates quoted on bonds? Now suppose that after 10 days of T-bills issued, the discount rate increased to 11.5 percent. At what price will the Treasury bill be selling when it has 50 days remaining to maturity?
Chapter21: International Cash Management
Section: Chapter Questions
Problem 7QA
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Question
![Problem 3.8.
Discount rate and
investment rate
ber 16,
Nepal Rastra Bank accepted a bid of 98.2 on a Treasury bill issue. What discount
rate would be published on this Treasury bill? What is the annual interest rate on
this bill that would make it comparable to rates quoted on bonds? Now suppose
that after 10 days of T-bills issued, the discount rate increased to 11.5 percent. At
what price will the Treasury bill be selling when it has 50 days remaining to
maturity?
10.000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfdfa887-85d0-4502-8a0f-411b40f9fddd%2F4298f9d9-4cc4-49f3-88aa-093723ddb647%2Fnbmjt7p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 3.8.
Discount rate and
investment rate
ber 16,
Nepal Rastra Bank accepted a bid of 98.2 on a Treasury bill issue. What discount
rate would be published on this Treasury bill? What is the annual interest rate on
this bill that would make it comparable to rates quoted on bonds? Now suppose
that after 10 days of T-bills issued, the discount rate increased to 11.5 percent. At
what price will the Treasury bill be selling when it has 50 days remaining to
maturity?
10.000
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