The average rate of return on a 182-day Government of Canada treasury bill sold on June 18, 2021, was 1.02%. A client sold the $25,000 T-bill after 53 days. What rate of return (per annum) did the client realize while holding the T-bill, if the short-term interest for this maturity had risen to 1.11% by the date of sale? Do not include the dollar sign in your answer. Do not include the comma usually used to denote thousands. Do not include the percent sign in your answer. a.) How much did the client pay for the T-bill on its issue date? b.) How much did the client sell the T-bill for? c.) What rate of return did the client realize on the T-bill? (Correct to exactly 4 decimal places.) Check
The average rate of return on a 182-day Government of Canada treasury bill sold on June 18, 2021, was 1.02%. A client sold the $25,000 T-bill after 53 days. What rate of return (per annum) did the client realize while holding the T-bill, if the short-term interest for this maturity had risen to 1.11% by the date of sale? Do not include the dollar sign in your answer. Do not include the comma usually used to denote thousands. Do not include the percent sign in your answer. a.) How much did the client pay for the T-bill on its issue date? b.) How much did the client sell the T-bill for? c.) What rate of return did the client realize on the T-bill? (Correct to exactly 4 decimal places.) Check
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:The average rate of return on a 182-day Government of Canada treasury bill sold on June 18, 2021, was 1.02%. A client sold the $25,000
T-bill after 53 days. What rate of return (per annum) did the client realize while holding the T-bill, if the short-term interest for this
maturity had risen to 1.11% by the date of sale?
Do not include the dollar sign in your answer.
Do not include the comma usually used to denote thousands.
Do not include the percent sign in your answer.
a.) How much did the client pay for the T-bill on its issue date?
b.) How much did the client sell the T-bill for?
c.) What rate of return did the client realize on the T-bill?
(Correct to exactly 4 decimal places.)
Check
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