Suppose That in Order to Buy a Treasury Bill (T-Bill)

question 127

Multiple Choice

Suppose that in order to buy a Treasury bill (T-bill) that matures to $10,000 in 10 months, you must pay $9,750. What rate does this earn? Round your answer to one decimal place. ​

• A)4.3%
• B)1.8%
• C)3.7%
• D)2.5%
• E)3.1%

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Definitions:

Alternate Route

An alternative path or method to achieve an objective, often considered when the primary route is obstructed or less desirable.

Traffic Jam

A condition on roadways where vehicles are stopped or moving very slowly due to vehicle overflow or other factors like construction or accidents.

Well-Learned Behavior

is an action or response that has been practiced so much that it becomes automatic or performed without conscious thought.

Mechanistic Processes

Systems or methods that operate or are explained through mechanical or predictable outcomes, often relating to the fundamental physical or biochemical operations underlying a phenomenon.