7. On December 8, 2017, Cecilia buys a T-Bill with a face value of $35,000 maturing...

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7. On December 8, 2017, Cecilia buys a T-Bill with a face value of $35,000 maturing on February 14, 2018. She pays $34,174.13. (a) Find Cecilia's annualized yield rate. (b) Find the simple (annual) rate of discount on the T-Bill. (c) On January 8, 2018, Cecilia will sell the T-Bill to Delila at a price that provides Delila with a simple (annual) discount rate of 14%. i. How much will Delila pay to Cecilia? ii. Find Cecilia's annualized yield. 7. On December 8, 2017, Cecilia buys a T-Bill with a face value of $35,000 maturing on February 14, 2018. She pays $34,174.13. (a) Find Cecilia's annualized yield rate. (b) Find the simple (annual) rate of discount on the T-Bill. (c) On January 8, 2018, Cecilia will sell the T-Bill to Delila at a price that provides Delila with a simple (annual) discount rate of 14%. i. How much will Delila pay to Cecilia? ii. Find Cecilia's annualized yield.

Answer rating: 100% (QA)

a To find Cecilias annualized yield rate we can use the following formula Annualized yield rate Face ... View the full answer