Betty purchased a 364-day $50,000 T-bill on issue date for $48,873.86. After holding it for 215...

 

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Betty purchased a 364-day $50,000 T-bill on issue date for $48,873.86. After holding it for 215 days, she sold it to a buyer to yield 1.57%. a) What was the original yield of the bill? b) For what price did Betty sell the Bill? c) What annual rate of return did Betty realize while holding the bill? Betty purchased a 364-day $50,000 T-bill on issue date for $48,873.86. After holding it for 215 days, she sold it to a buyer to yield 1.57%. a) What was the original yield of the bill? b) For what price did Betty sell the Bill? c) What annual rate of return did Betty realize while holding the bill?

Answer rating: 100% (QA)

Lets break this down step by step a To find the original yield of the Tbill we can use the formula f... View the full answer