Question: What is the effective compound rate of interest you earn
What is the effective, compound rate of interest you earn if you enter into a repurchase agreement in which you buy a Treasury bill for $76,789 and agree to sell it after a month (30 days) for $77,345? What is the com pound rate of interest you pay if you sell a Treasury bill for $76,789 and repurchase it after 30 days for $77,345?
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