Suppose You Buy a 30-Day T-Bill with a Face Value

question 26

Multiple Choice

Suppose you buy a 30-day T-bill with a face value of $1,000 at a price of $990. Your discount rate yield (DRY) would be

• A)9.75%.
• B)10%.
• C)10.5%.
• D)12%.

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Definitions:

Constructs

A concept or model meant to help understand the world, often used to group various ideas or phenomena in psychology, sociology, and other social sciences.

Indicator Variables

Variables in statistical analyses that are used to represent subgroups and measure categorical variables, often in the form of 0/1 binary indicators.

Concepts

Abstract ideas or mental symbols that represent phenomena or objects, used to understand and communicate about the world.

Variables

Quantifiable or qualifiable characteristics, factors, or conditions that can vary or change within a study or evaluation.