A Treasury Bill with a Par Value of $100,000 Due

question 78

Multiple Choice

A Treasury bill with a par value of $100,000 due three months from now is selling today for $97,087 with an effective annual yield of

• A) 12.40%.
• B) 12.55%.
• C) 12.62%.
• D) 12.68%.
• E) None of the options are correct.

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Definitions:

Bank Service Charge

Fees charged by banks for maintaining accounts and providing various banking services.