Jake Purchased a $100,000 182-Day T-Bill Discounted to Yield 5

question 109

Short Answer

Jake purchased a $100,000 182-day T-bill discounted to yield 5.5%. When he sold it 30 days later, yields had dropped to 5.0% simple interest. How much did Jake earn? (Taken from CIFP course materials.)

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Definitions:

Total Losses

The complete financial loss associated with an investment, project, or business activity, where no returns are recovered.

Losses

The negative financial result from business activities when costs exceed revenues.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period.

Supply

The total amount of a product or service that is available to consumers.