Treasury Bills (zero coupon bonds with a face value of 1000 TL. with 45 days to maturity
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Question:
Treasury Bills (zero coupon bonds with a face value of 1000 TL. with 45 days to maturity are trading currently at a price of 972.88 TL. If you buy this zero coupon now at the current price, what will be the effective annual rate (EAR) that you will get at the end of its maturity?
a. 33.45 %
b. 5.65 %
c. 2.79 %
d. 24.98 %
Related Book For
International Financial Management
ISBN: 978-0132162760
2nd edition
Authors: Geert Bekaert, Robert J. Hodrick
Posted Date: