Maryellen Epplin Notices That a Particular T-Bill Has a Banker's

question 9

Multiple Choice

Maryellen Epplin notices that a particular T-Bill has a banker's discount rate of 9 percent in the Wall Street Journal.She knows that this T-Bill has 20 days to maturity and has a face value of $10,000.
What is the yield to maturity on this T-Bill?

• A)9 percent
• B)0.5 percent
• C)4.5 percent
• D)9.17 percent
• E)None of the options is correct.

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Definitions:

Guarantees

Formal promises or assurances, typically in writing, that certain conditions will be fulfilled, especially relating to the quality or durability of a product.

Good

An item or product that is produced or manufactured to fulfill wants or needs.

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An intangible act or use benefit provided by one party to another that does not result in ownership of anything.

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The place a brand or product occupies in the consumers' minds relative to competitors, often based on attributes, benefits, perceptions, or reputation.