Suppose that on January 1, 2022, the price of a one-year Treasury bill-with a face value of $1.000 is $926.78. Investors expect that the inflation rate will be 4% during 2022, but at the end of the year, the inflation rate turns out to have been 1% The nominal interest rate on the bill (measured as the yield to maturity) is % (Round your response to two decimal places)
Suppose that on January 1, 2022, the price of a one-year Treasury bill-with a face value of $1.000 is $926.78. Investors expect that the inflation rate will be 4% during 2022, but at the end of the year, the inflation rate turns out to have been 1% The nominal interest rate on the bill (measured as the yield to maturity) is % (Round your response to two decimal places)
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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Transcribed Image Text:Suppose that on January 1, 2022, the price of a one-year Treasury bill with a face value of $1,000-is $926.78 Investors expect that the inflation rate will be 4%
during 2022, but at the end of the year, the inflation rate turns out to have been 1%.
The nominal interest rate on the bill (measured as the yield to maturity) is % (Round your response to two decimal places)
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