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...


part D


Treasury bill yield.<br>An investor purchased a 91 day, $100,000 T-bill on its issue date for $99,180.46.<br>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<br>T-bill.)<br>(a) What was the original yield on the T-bill?<br>(Provide a percentage correct to 3 decimal places.)<br>(Do not include the % sign in your answer.)<br>Original yield =<br>(b) For what price was the T-bill sold?<br>(Do not include the $ sign in your answer.)<br>Price T-bill sold for =<br>(C) How much profit did the investment dealer make on this T-bill?<br>(Do not include the $ sign in your answer.)<br>Profit made by dealer =<br>(d) What rate of return (per annum) did the investor realize while holding this T-bill?<br>(Provide a percentage correct to 3 decimal places.)<br>(Do not include the % sign in your answer.)<br>Original yield =<br>Check<br>

Extracted 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

Jun 05, 2022
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