Dennis purchased $250 000 in 182-day T-bills 100 days before maturity to yield 3% on simple...

 

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Dennis purchased $250 000 in 182-day T-bills 100 days before maturity to yield 3% on simple discount. After holding it for 50 days, Dennis sold the T-bill at yield of 3.5% on discount basis a) How much did Dennis pay for buying the T-bills? b) For how much did Dennis sell the T-bills? Dennis purchased $250 000 in 182-day T-bills 100 days before maturity to yield 3% on simple discount. After holding it for 50 days, Dennis sold the T-bill at yield of 3.5% on discount basis a) How much did Dennis pay for buying the T-bills? b) For how much did Dennis sell the T-bills?

Answer rating: 100% (QA)

a To calculate how much Dennis paid for buying the Tbills we need to determine the face value of the ... View the full answer