(a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay...

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(a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9790. What annual simple interest rate does this earn?

(b) If the bank charges a fee of $40 to buy a T-bill, what is the actual interest rate you earn?

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Posted Date: Jan 17, 2021 07:33 PM

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(a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay...

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a a Amount paid to purchase the Tbill 10000 maturity am... View the full answer

Finance Applications and Theory

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