Average Rate of Return or Yield on 180-Day Government of Canada

question 27

Essay

Average rate of return or yield on 180-day Government of Canada treasury bills sold on June 18, 2013 was 1.04%. The client sold the $50 000 T-bill after 39 days. What rate of return (per annum) did the client realize while holding the T-bill, if the short term interest for this maturity had risen to 1.13% by the date of sale?

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Definitions:

Administrative Agencies

Governmental bodies established to oversee and regulate specific activities or fields, often with the authority to enforce laws and create regulations within their purview.

Lawmaking Power

The authority or capability to formulate, pass, and enact laws, typically held by a legislative body or government.

Executive Administrative Agency

A government agency under the direct authority of the executive branch, responsible for implementing and enforcing laws and regulations.

Independent Agencies

Agencies of the United States federal government that are created by an act of Congress and are independent of the executive departments.