# Question: Assume a 1 000 Treasury bill is quoted to pay 5

Assume a $1,000 Treasury bill is quoted to pay 5 percent interest over a six-month period.

a. How much interest would the investor receive?

b. What will be the price of the Treasury bill?

c. What will be the effective yield?

a. How much interest would the investor receive?

b. What will be the price of the Treasury bill?

c. What will be the effective yield?

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