An 8% 13-Week Treasury Bill Would Have an Effective Interest

question 27

Multiple Choice

An 8% 13-week Treasury bill would have an effective interest rate of (to the nearest hundredth percent) ? Assume it is a $10,000 Treasury bill.

• A) 8.20%
• B) 8.16%
• C) 8.17%
• D) 9.00%
• E) None of these

---

Definitions:

Credibility

The perception of being reliable, trustworthy, and knowledgeable, essential for effective communication and leadership.

Reciprocity/Obligation Approach

A social exchange principle suggesting that individuals feel compelled to return favors or respond in kind to the actions of others.

Appropriateness

The degree to which an action, response, or behavior matches the expected norms or circumstances.

Reciprocity/Obligation Rule

The social norm of responding to a positive action with another positive action, fostering mutual benefit.