Treasury bill yield. An investor purchased a 91 day, $100,000 T-bill on its issue date for $99,180.46. After holding it for 40 days, she sold the T-bill for a yield of 3.778% (This yield refers to the rate of return the buyer will receive on the T-bill.) (a) What was the original yield on the T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = (b) For what price was the T-bill sold? (Do not include the $ sign in your answer.) Price T-bill sold for = (C) How much profit did the investment dealer make on this T-bill? (Do not include the $ sign in your answer.) Profit made by dealer =
Treasury bill yield. An investor purchased a 91 day, $100,000 T-bill on its issue date for $99,180.46. After holding it for 40 days, she sold the T-bill for a yield of 3.778% (This yield refers to the rate of return the buyer will receive on the T-bill.) (a) What was the original yield on the T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = (b) For what price was the T-bill sold? (Do not include the $ sign in your answer.) Price T-bill sold for = (C) How much profit did the investment dealer make on this T-bill? (Do not include the $ sign in your answer.) Profit made by dealer =
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:Treasury bill yield.
An investor purchased a 91 day, $100,000 T-bill on its issue date for $99,180.46.
After holding it for 40 days, she sold the T-bill for a yield of 3.778% (This yield refers to the rate of return the buyer will receive on the
T-bill.)
(a) What was the original yield on the T-bill?
(Provide a percentage correct to 3 decimal places.)
(Do not include the % sign in your answer.)
Original yield =
(b) For what price was the T-bill sold?
(Do not include the $ sign in your answer.)
Price T-bill sold for =
(C) How much profit did the investment dealer make on this T-bill?
(Do not include the $ sign in your answer.)
Profit made by dealer =
(d) What rate of return (per annum) did the investor realize while holding this T-bill?
(Provide a percentage correct to 3 decimal places.)
(Do not include the % sign in your answer.)
Original yield =
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