Use a banker's year described above to answer this question. T-bills (Treasury bills) are one of the instruments the U.S. Treasury Department uses to finance public debt. If you buy a 290-day T-bill with a maturity value of $19,750 for $19,350.89, what annual simple interest rate will you earn? Express your answer as a percentage. _%. Round to the nearest thousandths of a percent (3 decima places).
Use a banker's year described above to answer this question. T-bills (Treasury bills) are one of the instruments the U.S. Treasury Department uses to finance public debt. If you buy a 290-day T-bill with a maturity value of $19,750 for $19,350.89, what annual simple interest rate will you earn? Express your answer as a percentage. _%. Round to the nearest thousandths of a percent (3 decima 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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![**Use a banker's year described above to answer this question.**
T-bills (Treasury bills) are one of the instruments the U.S. Treasury Department uses to finance public debt. If you buy a 290-day T-bill with a maturity value of $19,750 for $19,350.89, what annual simple interest rate will you earn? Express your answer as a percentage.
__________%. Round to the nearest thousandths of a percent (3 decimal places).
[Input Box]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fc3ef53-ef76-4c8f-9c49-6c2ebf0a14b7%2F24602368-c346-4ed9-807e-1f1c9139c91e%2Fm6rp4b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Use a banker's year described above to answer this question.**
T-bills (Treasury bills) are one of the instruments the U.S. Treasury Department uses to finance public debt. If you buy a 290-day T-bill with a maturity value of $19,750 for $19,350.89, what annual simple interest rate will you earn? Express your answer as a percentage.
__________%. Round to the nearest thousandths of a percent (3 decimal places).
[Input Box]
Transcribed Image Text:When simple interest is applied to short-term notes, the time period is typically expressed in days instead of months or years. To convert this to years, we divide the number of days by 360, using a method known as a "banker's year," which assumes a 360-day year.
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Treasury bills are very important form of investments being used in business. Investor earns interest on purchase of treasury bills.
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