The date is January 14, 2019. Muhammad can buy T-bill A with a face value of $43,000 maturing on March 8, 2019 for $42,623.49 or he can pay $4,757.69 for T-bill B with a face value of $5,000 maturing on July 26, 2019. True or false: T-bill A has a lower discount rate than T-bill B. (Use the daycount convention ACT/360 for both.) Select one: O True O False Certainty OC=1 (Unsure: <67%) OC=2 (Mid: > 67%) OC-3 ( Quite sure: >80%)
The date is January 14, 2019. Muhammad can buy T-bill A with a face value of $43,000 maturing on March 8, 2019 for $42,623.49 or he can pay $4,757.69 for T-bill B with a face value of $5,000 maturing on July 26, 2019. True or false: T-bill A has a lower discount rate than T-bill B. (Use the daycount convention ACT/360 for both.) Select one: O True O False Certainty OC=1 (Unsure: <67%) OC=2 (Mid: > 67%) OC-3 ( Quite sure: >80%)
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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4. the math of interest. please indicate if you are unsure or totally sure about the answer
Transcribed Image Text:The date is January 14, 2019. Muhammad can buy T-bill A with a face value of $43,000 maturing on March 8, 2019
for $42,623.49 or he can pay $4,757.69 for T-bill B with a face value of $5,000 maturing on July 26, 2019. True or
false: T-bill A has a lower discount rate than T-bill B. (Use the daycount convention ACT/360 for both.)
Select one:
True
False
Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 (Quite sure: >80%)
Expert Solution
Given,
| Tbill A | Tbill B | |
| Purchase Date | 14 January 2019 | 14 January 2019 |
| Maturity Date | 08 March 2019 | 26 July 2019 |
| Face Value | $ 43,000.00 | $ 5,000.00 |
| Tbill Current Price | $ 42,623.49 | $ 4,757.69 |
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