Question: TRUE OR FALSE Consider that a Treasury Bill will be amortized for its nominal value of 10,000 euros in 12 months and is being issued

TRUE OR FALSE

Consider that a Treasury Bill will be amortized for its nominal value of 10,000 euros in 12 months and is being issued today at 97.95% of its nominal value (that is, at 9,795 euro). As you may know, Treasury Bills do not pay interest during their validity, the profitability is achieved by the difference between their purchase price and their amortization. The IRR (internal rate of return) of the described Treasury bill is 2.09%.

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