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

question 109

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 the above

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Definitions:

Paid-In Capital

represents funds raised by a company through issuing securities like stocks, reflecting the additional amount over the par value that investors are willing to pay.

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Par Value

A nominal value assigned to share of stock in the charter of a corporation, unrelated to market value.

Legal Expense

Costs incurred in the process of legal advice, litigation, or other legal services.