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

question 35

Multiple Choice

A Treasury bill with a par value of $100,000 due three months from now is selling today for $97,087, with an effective annual yield of

• A)12.40%.
• B)12.55%.
• C)12.62%.
• D)12.68%.
• E)None of the options

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Definitions:

Cognitive Psychologist

A professional in psychology who studies the mental processes such as perception, memory, thought, and problem-solving, and how they influence behavior.

Anxiety Disorder

A category of mental health disorders characterized by excessive fear, worry, and anxiety that is persistent and interferes with daily activities.

Illogical Thought Processes

Reasoning or thinking that lacks coherence and consistency, often leading to conclusions that are not supported by evidence or sound reasoning.

Behavioral Therapist

A practitioner who focuses on modifying maladaptive behaviors through reinforcement, punishment, and other learning principles.