A $100,000, 156-day Government of Canada Treasury bill was purchased on its date of issue to yield 1.9%. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a....


A $100,000, 156-day Government of Canada Treasury bill was purchased on its<br>date of issue to yield 1.9%. (Do not round intermediate calculations and round<br>your final answers to 2 decimal places.)<br>a. What price did the investor pay?<br>Purchase price<br>$4<br>b. Calculate the market value of the T-bill 82 days later if the rate of return then<br>required by the market has:<br>Market value<br>(1) Risen to 2.2%<br>(ii) Remained at 1.9%<br>(iii)Fallen to 1.6%<br>c. Calculate the rate of return actually realized by the investor if the T-bill is sold<br>at each of the three prices calculated in Part (b).<br>(1) r =<br>(11) r<br>(iii)r<br>

Extracted text: A $100,000, 156-day Government of Canada Treasury bill was purchased on its date of issue to yield 1.9%. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What price did the investor pay? Purchase price $4 b. Calculate the market value of the T-bill 82 days later if the rate of return then required by the market has: Market value (1) Risen to 2.2% (ii) Remained at 1.9% (iii)Fallen to 1.6% c. Calculate the rate of return actually realized by the investor if the T-bill is sold at each of the three prices calculated in Part (b). (1) r = (11) r (iii)r

Jun 07, 2022
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