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 = Check
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 = 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
Problem 1PS
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part D
![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 =
Check](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad3166cb-251b-493d-b350-1e222cf025dc%2Fbc952130-d9d2-4556-983f-d7ea35a01197%2Fufmcpav_processed.jpeg&w=3840&q=75)
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 =
Check
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