N Trest Bought a $10,000 Treasury Bill at a 18

question 38

Multiple Choice

N. Trest bought a $10,000 Treasury bill at a 18% discount for 13 weeks (91 days) . How much does N pay for the bond?

• A) $10,000
• B) $9551.23
• C) $8,732.73
• D) $8,548.95

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Definitions:

Times Interest Earned

A financial metric indicating how many times a company can cover its interest obligations with its earnings before interest and taxes.

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, used as a measure of financial health.

Equity Multiplier

This financial ratio measures a company's leverage by comparing its total assets to its total shareholders' equity.

Net Profit Margin

A financial metric that shows the percentage of net income relative to revenue, indicating how much profit is generated from each dollar of sales.