What is the compound yield on a Treasury bill that costs $98,830 and will be redeemed for $100,000 after 90 days? Assume 365 days in a year. Round your answer to one decimal place.   % How much additional return would you have to earn if you had bought $100,000 worth of 90-day commercial paper for $98,566? Assume 365 days in a year. Round your answer to one decimal place.   %

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter13: Other Financing Alternatives
Section: Chapter Questions
Problem 1bM
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What is the compound yield on a Treasury bill that costs $98,830 and will be redeemed for $100,000 after 90 days? Assume 365 days in a year. Round your answer to one decimal place.

  %

How much additional return would you have to earn if you had bought $100,000 worth of 90-day commercial paper for $98,566? Assume 365 days in a year. Round your answer to one decimal place.

  %

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