An investor purchased a 182-day, $25,000 Province of Alberta Treasury bill on its date of issue for
Question:
An investor purchased a 182-day, $25,000 Province of Alberta Treasury bill on its date of issue for $24,812 and sold it 60 days later for $24,875.
a. What rate of return was implied in the original price?
b. What rate of return did the market require on the sale date?
c. What rate of return did the original investor actually realize during the 60-day holding period?
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a The interest effectively earned if held until maturity is I S P 25000 24812 ...View the full answer
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Related Book For 
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
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