The Purchaser of a 168 Day T-Bill with a Face

question 112

Short Answer

The purchaser of a 168 day T-bill with a face value of $100,000 paid $97,320.00 for it. After 60 days, interest rates had increased and she sold the T-bill for $97,833.95. What simple interest rate of return per annum did she realize while holding the T-bill?

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Definitions:

Southern Evangelicals

A demographic group in the Southern United States characterized by their strong evangelical Christian faith and its influence on their social and political views.

Slavery

A system in which individuals are owned by others, deprived of personal freedom, and forced to perform labor without compensation.

Christianity

A monotheistic religion based on the life and teachings of Jesus Christ, with numerous denominations worldwide.

Black Slaves

Individuals of African descent who were forcibly transported to and enslaved in various parts of the world, particularly in the Americas, from the 16th to the 19th centuries.