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Assume that 3-month Treasury bills totaling $23 billion were sold in $10,000 denominations at a discount rate of 5.200%. In

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Assume that 3-month Treasury bills totaling $23 billion were sold in $10,000 denominations at a discount rate of 5.200%. In addition, the Treasury Department sold 6-month bills totaling $21 billion at a discount rate of 5.145%.

What is the discount amount for 3-month bills?

Note: Do not round intermediate calculations. Round your final answer to the nearest cent.

What is the discount amount for 6-month bills?

Note: Do not round intermediate calculations. Round your final answer to the nearest cent.

What is the effective rate for 3-month bills?

Note: Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.

What is the effective rate for 6-month bills?

Note: Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.

Expert Answer:

Answer rating: 100% (QA)

To calculate the discount amount for 3 month bills Discount Face Value x Discount Rate x Time Where View the full answer


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Related Book For  answer-question
Fundamentals Of Corporate Finance

Fundamentals Of Corporate Finance

ISBN: 9781259654756

10th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts, J. Ari Pandes, Thomas Holloway

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Posted Date: March 15, 2023 02:57:29
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