Matt bought a 14 week t-bill for $5953.99 which has a maturity value of $6000.00. For what

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Matt bought a 14 week t-bill for $5953.99 which has a maturity value of $6000.00. For what follows, assume simple interest with a 365 day year.

a) What annual simple interest rate would Matt earn?

b) Suppose Matt sells the t-bill 40 days later to another investor who wishes to yield 3.10%. What price did the t-bill sell for?

c) What rate of return did Matt earn on his investment?

Related Book For answer-question

Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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Posted Date: Feb 08, 2023 04:08 AM

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Matt bought a 14 week t-bill for $5953.99 which has a maturity value of $6000.00. For what

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Investment Analysis and Portfolio Management

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