A Treasury Bill with a Par Value of $100,000 Due

question 5

Multiple Choice

A Treasury bill with a par value of $100,000 due one month from now is selling today for $99,010.The effective annual yield is __________.

• A) 12.40%
• B) 12.55%
• C) 12.62%
• D) 12.68%
• E) none of these

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Definitions:

Pharmaceutical Stores

Retail outlets specializing in the sale of medications and other health-related products.

Glocalization

An approach whereby firms achieve global integration while still meeting the demands of local markets.

Economies of Scale

The cost advantage that arises with increased output of a product, resulting in a decrease in fixed and variable costs per unit.

Standardized Products

Goods or services that are uniform in quality and performance, manufactured or delivered according to set specifications to ensure consistency and interchangeability.