A T-Bill with 125 Days Remaining to Maturity Is Discounted

question 2

Short Answer

A T-bill with 125 days remaining to maturity is discounted to yield 4.6% pa simple interest. What is the effective annualized rate of return on the T-bill?

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Definitions:

Individual Rights

Fundamental liberties and protections afforded to individuals, ensuring freedom and fair treatment under the law.

Autonomous Decision Making

The capability and right of individuals to make choices regarding their life and actions without external coercion.

Justice Orientation

An approach focusing on fairness and the equitable distribution of resources and decisions.

Care Orientation

A focus or preference for approaches and decisions that prioritize empathy, nurturing, and the welfare of others, especially in moral and ethical considerations.